Analysts Are Updating Their P N Gadgil Jewellers Limited (NSE:PNGJL) Estimates After Its First-Quarter Results

It's been a good week for P N Gadgil Jewellers Limited (NSE:PNGJL) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.3% to ₹670. It was a credible result overall, with revenues of ₹24b and statutory earnings per share of ₹30.20 both in line with analyst estimates, showing that N Gadgil Jewellers is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for N Gadgil Jewellers from dual analysts is for revenues of ₹131.9b in 2027. If met, it would imply a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.2% to ₹35.20. In the lead-up to this report, the analysts had been modelling revenues of ₹126.9b and earnings per share (EPS) of ₹30.55 in 2027. So it seems there's been a definite increase in optimism about N Gadgil Jewellers' future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

See our latest analysis for N Gadgil Jewellers

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹747, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that N Gadgil Jewellers' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 48% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% annually. Factoring in the forecast slowdown in growth, it looks like N Gadgil Jewellers is forecast to grow at about the same rate as 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 N Gadgil Jewellers' earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider 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 analyst estimates for N Gadgil Jewellers going out as far as 2029, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for N Gadgil Jewellers you should be aware of.

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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.