Happy Forgings Limited Just Beat EPS By 10.0%: Here's What Analysts Think Will Happen Next
As you might know, Happy Forgings Limited (NSE:HAPPYFORGE) just kicked off its latest quarterly results with some very strong numbers. The company beat expectations with revenues of ₹4.5b arriving 2.5% ahead of forecasts. Statutory earnings per share (EPS) were ₹9.68, 10.0% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Happy Forgings' four analysts are now forecasting revenues of ₹18.9b in 2027. This would be a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 14% to ₹39.65. Before this earnings report, the analysts had been forecasting revenues of ₹18.8b and earnings per share (EPS) of ₹37.12 in 2027. So the consensus seems to have become somewhat more optimistic on Happy Forgings' earnings potential following these results.
See our latest analysis for Happy Forgings
The consensus price target rose 13% to ₹1,639, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Happy Forgings, with the most bullish analyst valuing it at ₹1,931 and the most bearish at ₹1,062 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Happy Forgings' growth to accelerate, with the forecast 21% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.6% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Happy Forgings to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Happy Forgings' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Happy Forgings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Happy Forgings going out to 2029, and you can see them free on our platform here..
We also provide an overview of the Happy Forgings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.