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Century Plyboards (India) Limited Beat Revenue Forecasts By 5.2%: Here's What Analysts Are Forecasting Next
The quarterly results for Century Plyboards (India) Limited (NSE:CENTURYPLY) were released last week, making it a good time to revisit its performance. Results overall were respectable, with statutory earnings of ₹4.53 per share roughly in line with what the analysts had forecast. Revenues of ₹18b came in 5.2% ahead of analyst predictions. 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 current consensus from Century Plyboards (India)'s 19 analysts is for revenues of ₹64.9b in 2027. This would reflect a reasonable 4.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 17% to ₹17.00. In the lead-up to this report, the analysts had been modelling revenues of ₹64.9b and earnings per share (EPS) of ₹18.80 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 minor downgrade to their earnings per share forecasts.
View our latest analysis for Century Plyboards (India)
The consensus price target held steady at ₹895, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Century Plyboards (India) at ₹1,160 per share, while the most bearish prices it at ₹753. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Century Plyboards (India)'s revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% per year. So it's pretty clear that, while Century Plyboards (India)'s revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. Happily, there were no major changes to revenue forecasts, with the business still 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. We have estimates - from multiple Century Plyboards (India) analysts - going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Century Plyboards (India) you should know about.
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