Power Mech Projects Limited (NSE:POWERMECH) Analysts Are More Bearish Than They Used To Be

One thing we could say about the analysts on Power Mech Projects Limited (NSE:POWERMECH) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After this downgrade, Power Mech Projects' dual analysts are now forecasting revenues of ₹55b in 2025. This would be a sizeable 31% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 50% to ₹236. Before this latest update, the analysts had been forecasting revenues of ₹63b and earnings per share (EPS) of ₹303 in 2025. Indeed, we can see that the analysts are a lot more bearish about Power Mech Projects' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Power Mech Projects

Analysts made no major changes to their price target of ₹5,697, suggesting the downgrades are not expected to have a long-term impact on Power Mech Projects' valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Power Mech Projects' growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Power Mech Projects to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Power Mech Projects.

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 Power Mech Projects going out as far as 2026, 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.