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Gabriel India Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Shareholders might have noticed that Gabriel India Limited (NSE:GABRIEL) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.4% to ₹1,401 in the past week. Gabriel India beat revenue expectations by 2.4%, at ₹16b. Statutory earnings per share (EPS) came in at ₹6.80, some 6.2% short of analyst estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the nine analysts covering Gabriel India are now predicting revenues of ₹61.8b in 2027. If met, this would reflect a solid 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 103% to ₹28.68. In the lead-up to this report, the analysts had been modelling revenues of ₹60.2b and earnings per share (EPS) of ₹30.03 in 2027. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a solid to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
See our latest analysis for Gabriel India
The consensus price target was unchanged at ₹1,685, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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 Gabriel India at ₹1,826 per share, while the most bearish prices it at ₹1,497. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Gabriel India is an easy business to forecast or the the analysts are all using similar assumptions.
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. The analysts are definitely expecting Gabriel India's growth to accelerate, with the forecast 43% annualised growth to the end of 2027 ranking favourably alongside historical growth of 16% 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 Gabriel India is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 Gabriel India going out to 2029, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Gabriel India (1 can't be ignored!) that we have uncovered.
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