EN
Pidilite Industries Limited Just Missed EPS By 9.0%: Here's What Analysts Think Will Happen Next
As you might know, Pidilite Industries Limited (NSE:PIDILITIND) recently reported its half-yearly numbers. Revenues of ₹88b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹6.03, missing estimates by 9.0%. 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. 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 consensus forecast from Pidilite Industries' 21 analysts is for revenues of ₹174.1b in 2027. This reflects a reasonable 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 4.0% to ₹27.41. In the lead-up to this report, the analysts had been modelling revenues of ₹172.5b and earnings per share (EPS) of ₹28.00 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
See our latest analysis for Pidilite Industries
It might be a surprise to learn that the consensus price target fell 5.0% to ₹1,688, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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. The most optimistic Pidilite Industries analyst has a price target of ₹2,065 per share, while the most pessimistic values it at ₹1,300. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 Pidilite Industries' growth to accelerate, with the forecast 16% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Pidilite Industries is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pidilite Industries. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Pidilite Industries' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Pidilite Industries. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Pidilite Industries going out to 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 Pidilite Industries you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.