Earnings Miss: Finolex Industries Limited Missed EPS By 68% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Finolex Industries Limited (NSE:FINPIPE), given that the company fell short of expectations when it released its quarterly results last week. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of ₹8.3b missed by 10%, and statutory earnings per share of ₹0.66 fell short of forecasts by 68%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Finolex Industries

Following the latest results, Finolex Industries' eight analysts are now forecasting revenues of ₹46.5b in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 18% to ₹10.69 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹48.5b and earnings per share (EPS) of ₹15.24 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the ₹309 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Finolex Industries at ₹381 per share, while the most bearish prices it at ₹212. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Finolex Industries' growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.8% 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 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Finolex Industries is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Finolex Industries' revenue estimates, but industry data suggests that it is 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 Finolex Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Finolex Industries going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Finolex Industries that we have uncovered.

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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.