Revenue Beat: Minda Corporation Limited Exceeded Revenue Forecasts By 11% And Analysts Are Updating Their Estimates
Investors in Minda Corporation Limited (NSE:MINDACORP) had a good week, as its shares rose 8.3% to close at ₹694 following the release of its second-quarter results. It was a mildly positive result, with revenues exceeding expectations at ₹22b, while statutory earnings per share (EPS) of ₹15.07 were in line with analyst forecasts. 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.
Taking into account the latest results, the consensus forecast from Minda's ten analysts is for revenues of ₹79.9b in 2027. This reflects a meaningful 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decline 18% to ₹19.38 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹75.1b and earnings per share (EPS) of ₹18.70 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.
See our latest analysis for Minda
Despite these upgrades,the analysts have not made any major changes to their price target of ₹798, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Minda at ₹875 per share, while the most bearish prices it at ₹675. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Minda is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Minda's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 16% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Minda is expected to grow much faster than its 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 Minda following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Minda. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Minda analysts - going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Minda you should be aware of.
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