Need To Know: This Analyst Just Made A Substantial Cut To Their Electrosteel Castings Limited (NSE:ELECTCAST) Estimates

One thing we could say about the covering analyst on Electrosteel Castings Limited (NSE:ELECTCAST) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon. Surprisingly the share price has been buoyant, rising 15% to ₹103 in the past 7 days. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

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After the downgrade, the consensus from Electrosteel Castings' solitary analyst is for revenues of ₹65b in 2026, which would reflect a not inconsiderable 11% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to plummet 36% to ₹7.40 in the same period. Before this latest update, the analyst had been forecasting revenues of ₹78b and earnings per share (EPS) of ₹12.80 in 2026. Indeed, we can see that the analyst is a lot more bearish about Electrosteel Castings' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Electrosteel Castings

The consensus price target fell 25% to ₹118, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 11% by the end of 2026. This indicates a significant reduction from annual growth of 21% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Electrosteel Castings is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Electrosteel Castings. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Electrosteel Castings' revenues are expected to grow slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Electrosteel Castings.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Electrosteel Castings going out as far as 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.