Earnings Beat: Greenply Industries Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Shareholders might have noticed that Greenply Industries Limited (NSE:GREENPLY) filed its first-quarter result this time last week. The early response was not positive, with shares down 8.3% to ₹295 in the past week. Revenues were ₹7.2b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹3.01, an impressive 67% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Greenply Industries' 14 analysts is for revenues of ₹31.9b in 2027. This would reflect a notable 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 68% to ₹13.30. In the lead-up to this report, the analysts had been modelling revenues of ₹31.0b and earnings per share (EPS) of ₹12.27 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
See our latest analysis for Greenply Industries
It will come as no surprise to learn that the analysts have increased their price target for Greenply Industries 5.4% to ₹363on the back of these upgrades. 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. There are some variant perceptions on Greenply Industries, with the most bullish analyst valuing it at ₹440 and the most bearish at ₹300 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.1% per year. So it's pretty clear that Greenply Industries is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Greenply Industries' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Greenply Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Greenply Industries going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Greenply Industries you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.