This Godawari Power & Ispat Limited (NSE:GPIL) Analyst Is Way More Bearish Than They Used To Be

The latest analyst coverage could presage a bad day for Godawari Power & Ispat Limited (NSE:GPIL), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously. What's more, Godawari Power & Ispat has been out of favour with the market in recent times, so it will be interesting to see if this downgrade is enough to sink the stock even further. The stock has already fallen 5.4% to ₹175 in the last week.

Following the downgrade, the current consensus from Godawari Power & Ispat's one analyst is for revenues of ₹57b in 2026 which - if met - would reflect a credible 4.8% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 42% to ₹17.80. Previously, the analyst had been modelling revenues of ₹69b and earnings per share (EPS) of ₹26.90 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for Godawari Power & Ispat

It'll come as no surprise then, to learn that the analyst has cut their price target 13% to ₹235.

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 2026 expected to display 3.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that Godawari Power & Ispat is also expected to grow slower than other industry participants.

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 Godawari Power & Ispat. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Godawari Power & Ispat'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 Godawari Power & Ispat.

Uncomfortably, our automated valuation tool also suggests that Godawari Power & Ispat stock could be overvalued following the downgrade. Shareholders could be left disappointed if these estimates play out. Find out why, and see how we estimate the valuation 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.