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PG Electroplast Limited Just Reported A Surprise Profit And Analysts Updated Their Estimates
It's been a good week for PG Electroplast Limited (NSE:PGEL) shareholders, because the company has just released its latest second-quarter results, and the shares gained 9.9% to ₹538. It was a solid earnings report, with revenues and earnings both coming in very strong. Revenues were 10% higher than the analysts had forecast, at ₹9.3b, while the company also delivered a surprise statutory profit, against analyst expectations of a loss. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from PG Electroplast's nine analysts is for revenues of ₹70.8b in 2027. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 41% to ₹10.68. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹68.2b and earnings per share (EPS) of ₹10.62 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.
See our latest analysis for PG Electroplast
Even though revenue forecasts increased, there was no change to the consensus price target of ₹693, suggesting the analysts are focused on earnings as the driver of value creation. 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 PG Electroplast analyst has a price target of ₹782 per share, while the most pessimistic values it at ₹560. 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 PG Electroplast 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 PG Electroplast'shistorical trends, as the 36% annualised revenue growth to the end of 2027 is roughly in line with the 34% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 21% per year. So although PG Electroplast is expected to maintain its revenue growth rate, it's definitely expected 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than 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. At Simply Wall St, we have a full range of analyst estimates for PG Electroplast going out to 2029, and you can see them free on our platform here..
You can also see whether PG Electroplast is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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