Emmvee Photovoltaic Power Limited Just Missed Earnings - But Analysts Have Updated Their Models
It's shaping up to be a tough period for Emmvee Photovoltaic Power Limited (NSE:EMMVEE), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Emmvee Photovoltaic Power missed earnings this time around, with ₹16b revenue coming in 6.1% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹5.52 also fell short of expectations by 16%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Emmvee Photovoltaic Power from five analysts is for revenues of ₹72.0b in 2027. If met, it would imply a meaningful 20% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.2% to ₹22.17. In the lead-up to this report, the analysts had been modelling revenues of ₹78.0b and earnings per share (EPS) of ₹21.71 in 2027. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.
View our latest analysis for Emmvee Photovoltaic Power
There's been no real change to the average price target of ₹372, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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 Emmvee Photovoltaic Power at ₹430 per share, while the most bearish prices it at ₹290. 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. It's pretty clear that there is an expectation that Emmvee Photovoltaic Power's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 43% growth on an annualised basis. This is compared to a historical growth rate of 60% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% annually. Even after the forecast slowdown in growth, it seems obvious that Emmvee Photovoltaic Power is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Emmvee Photovoltaic Power 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. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹372, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Emmvee Photovoltaic Power. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Emmvee Photovoltaic Power analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Emmvee Photovoltaic Power has 2 warning signs (and 1 which is potentially serious) we think you should know about.
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