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Shaily Engineering Plastics Limited (NSE:SHAILY) Analysts Are Pretty Bullish On The Stock After Recent Results
Investors in Shaily Engineering Plastics Limited (NSE:SHAILY) had a good week, as its shares rose 7.9% to close at ₹3,170 following the release of its quarterly results. Results overall were respectable, with statutory earnings of ₹13.27 per share roughly in line with what the analysts had forecast. Revenues of ₹3.2b came in 3.6% ahead of analyst predictions. 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 current consensus from Shaily Engineering Plastics' six analysts is for revenues of ₹12.6b in 2027. This would reflect a decent 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 33% to ₹53.92. In the lead-up to this report, the analysts had been modelling revenues of ₹12.7b and earnings per share (EPS) of ₹53.81 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Shaily Engineering Plastics
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to ₹3,917. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Shaily Engineering Plastics analyst has a price target of ₹4,508 per share, while the most pessimistic values it at ₹3,556. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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 Shaily Engineering Plastics' past performance and to peers in the same industry. It's clear from the latest estimates that Shaily Engineering Plastics' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shaily Engineering Plastics to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Shaily Engineering Plastics going out to 2029, and you can see them free on our platform here.
You can also view our analysis of Shaily Engineering Plastics' balance sheet, and whether we think Shaily Engineering Plastics is carrying too much debt, for free on our platform here.
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