Earnings Miss: Century Plyboards (India) Limited Missed EPS By 11% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Century Plyboards (India) Limited (NSE:CENTURYPLY) released its third-quarter result to the market. The early response was not positive, with shares down 5.0% to ₹804 in the past week. Statutory earnings per share of ₹2.63 unfortunately missed expectations by 11%, although it was encouraging to see revenues of ₹11b exceed expectations by 3.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Century Plyboards (India)

Following the latest results, Century Plyboards (India)'s 17 analysts are now forecasting revenues of ₹53.1b in 2026. This would be a huge 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 104% to ₹19.48. In the lead-up to this report, the analysts had been modelling revenues of ₹53.2b and earnings per share (EPS) of ₹20.51 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹859, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Century Plyboards (India) at ₹1,074 per share, while the most bearish prices it at ₹657. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 2026 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So it's pretty clear that Century Plyboards (India) is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Century Plyboards (India). Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

Plus, you should also learn about the 2 warning signs we've spotted with Century Plyboards (India) (including 1 which shouldn't be ignored) .

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

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.