Here's What Analysts Are Forecasting For Praj Industries Limited (NSE:PRAJIND) Following Its Earnings Miss

As you might know, Praj Industries Limited (NSE:PRAJIND) last week released its latest yearly, and things did not turn out so great for shareholders. Praj Industries missed analyst forecasts, with revenues of ₹32b and statutory earnings per share (EPS) of ₹11.91, falling short by 5.7% and 6.2% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the six analysts covering Praj Industries are now predicting revenues of ₹38.0b in 2026. If met, this would reflect a meaningful 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 44% to ₹17.13. Before this earnings report, the analysts had been forecasting revenues of ₹42.1b and earnings per share (EPS) of ₹17.93 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for Praj Industries

The consensus price target fell 20% to ₹617, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Praj Industries at ₹759 per share, while the most bearish prices it at ₹545. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Praj Industries' revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2026 being well below the historical 24% 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% per year. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Praj Industries. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 estimates - from multiple Praj Industries analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Praj Industries (at least 1 which is significant) , and understanding them should be part of your investment process.

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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.