Praj Industries Limited Just Recorded A 80% EPS Beat: Here's What Analysts Are Forecasting Next
Last week, you might have seen that Praj Industries Limited (NSE:PRAJIND) released its quarterly result to the market. The early response was not positive, with shares down 3.8% to ₹242 in the past week. Revenues were ₹8.5b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹1.26, an impressive 80% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Praj Industries' five analysts are now forecasting revenues of ₹34.6b in 2027. This would be a reasonable 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 351% to ₹8.34. Before this earnings report, the analysts had been forecasting revenues of ₹34.2b and earnings per share (EPS) of ₹6.18 in 2027. Although the revenue estimates have not really changed, we can see there's been a massive increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
View our latest analysis for Praj Industries
The consensus price target was unchanged at ₹355, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Praj Industries, with the most bullish analyst valuing it at ₹390 and the most bearish at ₹322 per share. This is a very narrow spread of estimates, implying either that Praj Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Praj Industries' growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Praj Industries is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Praj Industries' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹355, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Praj Industries analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Praj Industries .
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