Texmaco Rail & Engineering Limited Recorded A 19% Miss On Revenue: Analysts Are Revisiting Their Models
Last week, you might have seen that Texmaco Rail & Engineering Limited (NSE:TEXRAIL) released its quarterly result to the market. The early response was not positive, with shares down 4.4% to ₹107 in the past week. Revenues were ₹7.6b, 19% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹4.84 being in line with what the analysts anticipated. Earnings are an important time for investors, as they can track a company's performance, look at what the 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 statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Texmaco Rail & Engineering's dual analysts is for revenues of ₹46.9b in 2027. This would reflect a notable 11% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 15% to ₹6.10. Before this earnings report, the analysts had been forecasting revenues of ₹44.9b and earnings per share (EPS) of ₹5.50 in 2027. So it seems there's been a definite increase in optimism about Texmaco Rail & Engineering's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.
View our latest analysis for Texmaco Rail & Engineering
Despite these upgrades, the consensus price target fell 11% to ₹149, perhaps signalling that the uplift in performance is not expected to last.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Texmaco Rail & Engineering's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2027 being well below the historical 24% p.a. growth over the last five years. Compare this to the 248 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. So it's pretty clear that, while Texmaco Rail & Engineering's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Texmaco Rail & Engineering's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Texmaco Rail & Engineering will grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Texmaco Rail & Engineering's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
Even so, be aware that Texmaco Rail & Engineering is showing 1 warning sign in our investment analysis , you should know about...
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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.