Earnings Update: Here's Why Analysts Just Lifted Their Gabriel India Limited (NSE:GABRIEL) Price Target To ₹788

It's been a good week for Gabriel India Limited (NSE:GABRIEL) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.6% to ₹1,037. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.9%to hit ₹11b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Gabriel India's four analysts is for revenues of ₹47.5b in 2026. This would reflect a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 12% to ₹19.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹47.0b and earnings per share (EPS) of ₹20.30 in 2026. 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 small dip in their earnings per share forecasts.

See our latest analysis for Gabriel India

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 8.6% to ₹788, suggesting the revised estimates are not indicative of a weaker long-term future for the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Gabriel India at ₹1,398 per share, while the most bearish prices it at ₹444. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gabriel India's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Gabriel India'shistorical trends, as the 17% annualised revenue growth to the end of 2026 is roughly in line with the 20% 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 9.0% per year. So it's pretty clear that Gabriel India is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gabriel India. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Gabriel India going out to 2027, and you can see them free on our platform here.

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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.