Analysts Just Shaved Their Praj Industries Limited (NSE:PRAJIND) Forecasts Dramatically

The analysts covering Praj Industries Limited (NSE:PRAJIND) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

We've discovered 2 warning signs about Praj Industries. View them for free.

Following the downgrade, the current consensus from Praj Industries' six analysts is for revenues of ₹37b in 2026 which - if met - would reflect a solid 16% increase on its sales over the past 12 months. Per-share earnings are expected to ascend 17% to ₹13.97. Prior to this update, the analysts had been forecasting revenues of ₹42b and earnings per share (EPS) of ₹17.93 in 2026. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for Praj Industries

It'll come as no surprise then, to learn that the analysts have cut their price target 23% to ₹589.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Praj Industries' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Praj Industries' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. Even after the forecast slowdown in growth, it seems obvious that Praj Industries is also expected 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. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Praj Industries.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Praj Industries' financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk we've identified.

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.