Saregama India Limited (NSE:SAREGAMA) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹620
Saregama India Limited (NSE:SAREGAMA) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were respectable, with statutory earnings of ₹10.73 per share roughly in line with what the analysts had forecast. Revenues of ₹2.6b came in 3.0% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the four analysts covering Saregama India are now predicting revenues of ₹12.0b in 2027. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 13% to ₹13.04. Before this earnings report, the analysts had been forecasting revenues of ₹11.9b and earnings per share (EPS) of ₹12.95 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Saregama India
The consensus price target rose 22% to ₹620despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Saregama India's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Saregama India analyst has a price target of ₹655 per share, while the most pessimistic values it at ₹410. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Saregama India shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Saregama India's growth to accelerate, with the forecast 20% annualised growth to the end of 2027 ranking favourably alongside historical growth of 16% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Saregama India is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Saregama India going out to 2029, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Saregama India that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.