Coal India Limited Just Beat EPS By 34%: Here's What Analysts Think Will Happen Next

Investors in Coal India Limited (NSE:COALINDIA) had a good week, as its shares rose 2.9% to close at ₹525 following the release of its quarterly results. It looks like a credible result overall - although revenues of ₹365b were what the analysts expected, Coal India surprised by delivering a (statutory) profit of ₹17.78 per share, an impressive 34% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Coal India

After the latest results, the 22 analysts covering Coal India are now predicting revenues of ₹1.50t in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 6.3% to ₹57.50 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹1.50t and earnings per share (EPS) of ₹52.73 in 2025. So the consensus seems to have become somewhat more optimistic on Coal India's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.7% to ₹520. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Coal India at ₹640 per share, while the most bearish prices it at ₹180. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Coal India's past performance and to peers in the same industry. The analysts are definitely expecting Coal India's growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Coal India is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Coal India following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Coal India. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Coal India analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Coal India that you should be aware of.

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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.

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