GMM Pfaudler Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

A week ago, GMM Pfaudler Limited (NSE:GMMPFAUDLR) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. GMM Pfaudler delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ₹9.0b-11% above indicated-and₹9.22-88% above forecasts- respectively 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GMM Pfaudler after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the consensus forecast from GMM Pfaudler's two analysts is for revenues of ₹35.2b in 2026. This reflects a modest 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 94% to ₹29.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹33.7b and earnings per share (EPS) of ₹28.20 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for GMM Pfaudler

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹2,000, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. We would highlight that GMM Pfaudler's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. So it's pretty clear that, while GMM Pfaudler's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GMM Pfaudler's earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹2,000, 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 analyst estimates for GMM Pfaudler going out as far as 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for GMM Pfaudler that you should be aware 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.