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Earnings Miss: PI Industries Limited Missed EPS By 28% And Analysts Are Revising Their Forecasts
PI Industries Limited (NSE:PIIND) missed earnings with its latest half-yearly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹17b, statutory earnings missed forecasts by an incredible 28%, coming in at just ₹24.15 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PI Industries after the latest results.
After the latest results, the 23 analysts covering PI Industries are now predicting revenues of ₹70.5b in 2027. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 32% to ₹76.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹70.7b and earnings per share (EPS) of ₹76.56 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.
Check out our latest analysis for PI Industries
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,725. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic PI Industries analyst has a price target of ₹5,300 per share, while the most pessimistic values it at ₹2,010. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that PI Industries' rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that PI Industries is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹2,725, with the latest estimates not enough to have an impact on their price targets.
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 PI Industries analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for PI Industries that you need to take into consideration.
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