Trident Limited (NSE:TRIDENT) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
Shareholders of Trident Limited (NSE:TRIDENT) will be pleased this week, given that the stock price is up 12% to ₹23.89 following its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹17b, statutory earnings were in line with expectations, at ₹0.74 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the twin analysts covering Trident are now predicting revenues of ₹69.5b in 2027. If met, this would reflect an okay 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 4.5% to ₹1.00. In the lead-up to this report, the analysts had been modelling revenues of ₹73.8b and earnings per share (EPS) of ₹0.95 in 2027. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.
See our latest analysis for Trident
There's been no real change to the average price target of ₹27.00, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.
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. The analysts are definitely expecting Trident's growth to accelerate, with the forecast 7.2% annualised growth to the end of 2027 ranking favourably alongside historical growth of 1.2% per annum 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 14% per year. So it's clear that despite the acceleration in growth, Trident is expected to grow meaningfully slower than the industry average.
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 Trident following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹27.00, 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. We have analyst estimates for Trident going out as far as 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Trident that you should be aware of.
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