Analyst Estimates: Here's What Brokers Think Of GMM Pfaudler Limited (NSE:GMMPFAUDLR) After Its First-Quarter Report

GMM Pfaudler Limited (NSE:GMMPFAUDLR) shareholders are probably feeling a little disappointed, since its shares fell 8.5% to ₹1,283 in the week after its latest first-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹7.9b, statutory earnings were in line with expectations, at ₹11.78 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on GMM Pfaudler after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the latest results, GMM Pfaudler's lone analyst are now forecasting revenues of ₹33.7b in 2026. This would be a credible 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 219% to ₹29.00. In the lead-up to this report, the analyst had been modelling revenues of ₹34.3b and earnings per share (EPS) of ₹36.70 in 2026. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

View our latest analysis for GMM Pfaudler

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹2,100, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that GMM Pfaudler's revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2026 being well below the historical 23% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that GMM Pfaudler is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for GMM Pfaudler. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹2,100, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on GMM Pfaudler. Long-term earnings power is much more important than next year's profits. We have analyst estimates for GMM Pfaudler going out as far as 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for GMM Pfaudler that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.