SIS Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Investors in SIS Limited (NSE:SIS) had a good week, as its shares rose 3.4% to close at ₹382 following the release of its quarterly results. SIS reported ₹48b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹7.82 beat expectations, being 7.1% 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from SIS' three analysts is for revenues of ₹192.6b in 2027. This would reflect a satisfactory 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 97% to ₹24.65. In the lead-up to this report, the analysts had been modelling revenues of ₹192.6b and earnings per share (EPS) of ₹28.55 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
View our latest analysis for SIS
The consensus price target held steady at ₹454, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on SIS, with the most bullish analyst valuing it at ₹511 and the most bearish at ₹400 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SIS' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of SIS'historical trends, as the 13% annualised revenue growth to the end of 2027 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. It's clear that while SIS' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SIS. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for SIS going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for SIS that you should be aware of.
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