Bearish: This Analyst Is Revising Their GHCL Limited (NSE:GHCL) Revenue and EPS Prognostications

One thing we could say about the covering analyst on GHCL Limited (NSE:GHCL) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the downgrade, the current consensus from GHCL's solitary analyst is for revenues of ₹36b in 2025 which - if met - would reflect a satisfactory 4.9% increase on its sales over the past 12 months. Statutory earnings per share are supposed to sink 14% to ₹71.50 in the same period. Prior to this update, the analyst had been forecasting revenues of ₹43b and earnings per share (EPS) of ₹86.80 in 2025. Indeed, we can see that the analyst is a lot more bearish about GHCL's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for GHCL

It'll come as no surprise then, to learn that the analyst has cut their price target 18% to ₹543.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that GHCL's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2025 being well below the historical 7.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GHCL.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for GHCL. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that GHCL's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of GHCL.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.