Motherson Sumi Wiring India Limited Beat Revenue Forecasts By 12%: Here's What Analysts Are Forecasting Next
It's been a pretty great week for Motherson Sumi Wiring India Limited (NSE:MSUMI) shareholders, with its shares surging 11% to ₹38.78 in the week since its latest quarterly results. It was a mildly positive result, with revenues exceeding expectations at ₹41b, while statutory earnings per share (EPS) of ₹0.34 were in line with analyst forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Motherson Sumi Wiring India after the latest results.
Taking into account the latest results, the current consensus from Motherson Sumi Wiring India's 14 analysts is for revenues of ₹148.1b in 2027. This would reflect a solid 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 16% to ₹1.20. Before this earnings report, the analysts had been forecasting revenues of ₹139.0b and earnings per share (EPS) of ₹1.10 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
View our latest analysis for Motherson Sumi Wiring India
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹48.00, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic Motherson Sumi Wiring India analyst has a price target of ₹60.00 per share, while the most pessimistic values it at ₹38.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Motherson Sumi Wiring India shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Motherson Sumi Wiring India'shistorical trends, as the 18% annualised revenue growth to the end of 2027 is roughly in line with the 18% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So although Motherson Sumi Wiring India is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Motherson Sumi Wiring India's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹48.00, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Motherson Sumi Wiring India going out to 2029, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for Motherson Sumi Wiring India that we have uncovered.
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