SIS Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Investors in SIS Limited (NSE:SIS) had a good week, as its shares rose 3.0% to close at ₹435 following the release of its quarterly results. Revenues were ₹46b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹7.15 were also better than expected, beating analyst predictions by 11%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, SIS' four analysts are now forecasting revenues of ₹186.8b in 2027. This would be a solid 9.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 184% to ₹29.43. Before this earnings report, the analysts had been forecasting revenues of ₹181.5b and earnings per share (EPS) of ₹29.70 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.
View our latest analysis for SIS
It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹455, implying that the uplift in revenue is not expected to greatly contribute to SIS's valuation in the near term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values SIS at ₹540 per share, while the most bearish prices it at ₹400. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting SIS' growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SIS to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹455, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for SIS going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with SIS .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.