As you might know, Minda Industries Limited (NSE:MINDAIND) just kicked off its latest second-quarter results with some very strong numbers. Revenues of ₹14b beat analyst expectations by a huge 26%, while earnings per share (EPS) of₹1.89 also beat forecasts by 5.0%. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest forecasts to see what analysts are expecting for next year.
View our latest analysis for Minda Industries
Following the latest results, Minda Industries's seven analysts are now forecasting revenues of ₹59.7b in 2020. This would be a modest 3.8% improvement in sales compared to the last 12 months. Earnings per share are forecast to be ₹9.52, approximately in line with the last 12 months. Before this earnings report, analysts had been forecasting revenues of ₹65.3b and earnings per share (EPS) of ₹11.89 in 2020. From this we can that analyst sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the ₹363 price target, showing that analysts don't think the changes have a meaningful impact on the stock's intrinsic value. 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. The most optimistic Minda Industries analyst has a price target of ₹392 per share, while the most pessimistic values it at ₹305. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
Further, we can compare these estimates to past performance, and see how Minda Industries forecasts compare to the wider market's forecast performance. We would highlight that Minda Industries's revenue growth is expected to slow, with forecast 3.8% increase next year well below the historical 24%p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 11% next year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Minda Industries.