Analyst Estimates: Here's What Brokers Think Of M & B Engineering Limited (NSE:MBEL) After Its First-Quarter Report
M & B Engineering Limited (NSE:MBEL) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to ₹268 in the week after its latest first-quarter results. M & B Engineering reported in line with analyst predictions, delivering revenues of ₹2.9b and statutory earnings per share of ₹3.75, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on M & B Engineering after the latest results.
Taking into account the latest results, the most recent consensus for M & B Engineering from twin analysts is for revenues of ₹15.1b in 2027. If met, it would imply a solid 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.9% to ₹18.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹15.5b and earnings per share (EPS) of ₹20.60 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
View our latest analysis for M & B Engineering
Despite the cuts to forecast earnings, there was no real change to the ₹380 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the M & B Engineering's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 21% growth on an annualised basis. That is in line with its 21% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although M & B Engineering 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹380, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for M & B Engineering going out as far as 2029, and you can see them free on our platform here.
Even so, be aware that M & B Engineering is showing 1 warning sign in our investment analysis , you should know about...
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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.