This Parag Milk Foods Limited (NSE:PARAGMILK) Analyst Is Way More Bearish Than They Used To Be

Today is shaping up negative for Parag Milk Foods Limited (NSE:PARAGMILK) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the current consensus from Parag Milk Foods' solitary analyst is for revenues of ₹33b in 2025 which - if met - would reflect a credible 6.2% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 26% to ₹10.20. Previously, the analyst had been modelling revenues of ₹37b and earnings per share (EPS) of ₹14.10 in 2025. Indeed, we can see that the analyst is a lot more bearish about Parag Milk Foods' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Parag Milk Foods

It'll come as no surprise then, to learn that the analyst has cut their price target 16% to ₹260.

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. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 8.3% growth on an annualised basis. That is in line with its 7.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So although Parag Milk Foods is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Parag Milk Foods' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

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