Physicswallah Limited Recorded A 5.3% Miss On Revenue: Analysts Are Revisiting Their Models

It's shaping up to be a tough period for Physicswallah Limited (NSE:PWL), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Physicswallah missed analyst forecasts, with revenues of ₹12b and statutory earnings per share (EPS) of ₹0.48, falling short by 5.3% and 4.0% respectively. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Physicswallah's ten analysts is for revenues of ₹49.5b in 2027. This reflects a decent 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 215% to ₹1.02. Before this earnings report, the analysts had been forecasting revenues of ₹49.5b and earnings per share (EPS) of ₹1.02 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Physicswallah

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹148. 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. There are some variant perceptions on Physicswallah, with the most bullish analyst valuing it at ₹200 and the most bearish at ₹110 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We can infer from the latest estimates that forecasts expect a continuation of Physicswallah'shistorical trends, as the 33% annualised revenue growth to the end of 2027 is roughly in line with the 29% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 21% annually. So it's pretty clear that Physicswallah is forecast to grow substantially faster than its 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. 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 in mind, we wouldn't be too quick to come to a conclusion on Physicswallah. Long-term earnings power is much more important than next year's profits. We have forecasts for Physicswallah going out to 2029, and you can see them free on our platform here.

We also provide an overview of the Physicswallah Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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