Kaynes Technology India Limited Just Missed EPS By 17%: Here's What Analysts Think Will Happen Next
Kaynes Technology India Limited (NSE:KAYNES) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share of ₹8.36 unfortunately missed expectations by 17%, although it was encouraging to see revenues of ₹9.5b exceed expectations by 9.5%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kaynes Technology India after the latest results.
After the latest results, the 22 analysts covering Kaynes Technology India are now predicting revenues of ₹50.9b in 2027. If met, this would reflect a huge 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 18% to ₹60.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹50.8b and earnings per share (EPS) of ₹66.70 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
View our latest analysis for Kaynes Technology India
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.7% to ₹3,669, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Kaynes Technology India at ₹5,000 per share, while the most bearish prices it at ₹2,790. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kaynes Technology India's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Kaynes Technology India'shistorical trends, as the 43% annualised revenue growth to the end of 2027 is roughly in line with the 37% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 21% per year. So although Kaynes Technology India is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 in mind, we wouldn't be too quick to come to a conclusion on Kaynes Technology India. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kaynes Technology India analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Kaynes Technology India that you need to take into consideration.
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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.