Gravita India Limited (NSE:GRAVITA) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Gravita India Limited (NSE:GRAVITA) had a good week, as its shares rose 3.8% to close at ₹1,414 following the release of its quarterly results. The result was positive overall - although revenues of ₹14b were in line with what the analysts predicted, Gravita India surprised by delivering a statutory profit of ₹14.01 per share, modestly greater than expected. 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.

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After the latest results, the ten analysts covering Gravita India are now predicting revenues of ₹61.6b in 2027. If met, this would reflect a huge 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.4% to ₹59.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹65.1b and earnings per share (EPS) of ₹60.09 in 2027. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

See our latest analysis for Gravita India

The average price target was steady at ₹1,946even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Gravita India at ₹2,332 per share, while the most bearish prices it at ₹1,765. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Gravita India is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gravita India's past performance and to peers in the same industry. It's clear from the latest estimates that Gravita India's rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 17% p.a. 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 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Gravita India to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Gravita India's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Gravita India going out to 2029, and you can see them free on our platform here..

It might also be worth considering whether Gravita India's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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