₹820 - That's What Analysts Think GHCL Limited (NSE:GHCL) Is Worth After These Results

Last week saw the newest yearly earnings release from GHCL Limited (NSE:GHCL), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹33b and statutory earnings per share of ₹65.34 both in line with analyst estimates, showing that GHCL is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from GHCL's three analysts is for revenues of ₹34.5b in 2026. This would reflect a credible 5.3% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹65.20, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹34.3b and earnings per share (EPS) of ₹66.70 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for GHCL

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.4% to ₹820, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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 GHCL at ₹900 per share, while the most bearish prices it at ₹740. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 analysts are definitely expecting GHCL's growth to accelerate, with the forecast 5.3% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, GHCL is expected to grow slower 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 GHCL. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GHCL's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for GHCL going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for GHCL 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.