Analyst Estimates: Here's What Brokers Think Of Gravita India Limited (NSE:GRAVITA) After Its Full-Year Report

Last week, you might have seen that Gravita India Limited (NSE:GRAVITA) released its full-year result to the market. The early response was not positive, with shares down 2.6% to ₹948 in the past week. It was a credible result overall, with revenues of ₹32b and statutory earnings per share of ₹34.88 both in line with analyst estimates, showing that Gravita India is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Gravita India

Following the latest results, Gravita India's four analysts are now forecasting revenues of ₹41.6b in 2025. This would be a sizeable 32% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 30% to ₹45.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹42.0b and earnings per share (EPS) of ₹45.65 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹1,113, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Gravita India at ₹1,345 per share, while the most bearish prices it at ₹641. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Gravita India's growth to accelerate, with the forecast 32% annualised growth to the end of 2025 ranking favourably alongside historical growth of 23% 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 9.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Gravita India is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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 Gravita India. Long-term earnings power is much more important than next year's profits. We have forecasts for Gravita India going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Gravita India (2 don't sit too well with us) you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.