Results: Godawari Power & Ispat Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Godawari Power & Ispat Limited (NSE:GPIL) had a good week, as its shares rose 6.1% to close at ₹956 following the release of its yearly results. It looks to have been a bit of a mixed result. While revenues of ₹56b fell 10% short of what the analyst had predicted, statutory earnings per share (EPS) of ₹74.52 exceeded expectations by 5.9%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Godawari Power & Ispat

Following last week's earnings report, Godawari Power & Ispat's solitary analyst are forecasting 2025 revenues to be ₹56.0b, approximately in line with the last 12 months. Per-share earnings are expected to surge 39% to ₹96.00. Before this earnings report, the analyst had been forecasting revenues of ₹64.2b and earnings per share (EPS) of ₹87.20 in 2025. There's been a definite change in sentiment after these results, with the analyst delivering a to next year's revenue estimates, while at the same time substantially upgrading EPS. It's almost as though the business is anticipated to reduce its focus on growth to enhance profitability.

The average price target rose 18% to ₹1,250, with the analyst signalling that the improved earnings outlook is the key driver of value for shareholders - enough to offset the reduction in revenue estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Godawari Power & Ispat's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Godawari Power & Ispat's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.8% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.5% 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 Godawari Power & Ispat.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Godawari Power & Ispat's earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Godawari Power & Ispat. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Godawari Power & Ispat going out as far as 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Godawari Power & Ispat 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.