Solar Industries India Limited Just Beat Revenue By 26%: Here's What Analysts Think Will Happen Next
A week ago, Solar Industries India Limited (NSE:SOLARINDS) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. Revenue of ₹39b beat expectations by 26% and statutory earnings per share (EPS) of ₹72.11 exceeded forecasts by 19%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the 13 analysts covering Solar Industries India are now predicting revenues of ₹142.6b in 2027. If met, this would reflect a major 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 28% to ₹281. Before this earnings report, the analysts had been forecasting revenues of ₹138.1b and earnings per share (EPS) of ₹269 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for Solar Industries India
With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.3% to ₹20,653per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Solar Industries India at ₹23,435 per share, while the most bearish prices it at ₹11,200. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Solar Industries India's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 20% p.a. 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 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Solar Industries India 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 Solar Industries India's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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 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 Solar Industries India going out to 2029, and you can see them free on our platform here..
It might also be worth considering whether Solar Industries India's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.