Grindwell Norton Limited (NSE:GRINDWELL) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹2,169
Last week, you might have seen that Grindwell Norton Limited (NSE:GRINDWELL) released its quarterly result to the market. The early response was not positive, with shares down 2.5% to ₹2,043 in the past week. Grindwell Norton reported ₹8.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹10.43 beat expectations, being 3.3% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Grindwell Norton from three analysts is for revenues of ₹35.1b in 2027. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 15% to ₹45.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹34.7b and earnings per share (EPS) of ₹42.97 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Grindwell Norton
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.7% to ₹2,169. 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. The most optimistic Grindwell Norton analyst has a price target of ₹2,273 per share, while the most pessimistic values it at ₹2,116. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 Grindwell Norton's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Grindwell Norton is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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 Grindwell Norton following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Grindwell Norton analysts - going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Grindwell Norton you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.