Earnings Miss: Greenpanel Industries Limited Missed EPS By 11% And Analysts Are Revising Their Forecasts

As you might know, Greenpanel Industries Limited (NSE:GREENPANEL) last week released its latest full-year, and things did not turn out so great for shareholders. Greenpanel Industries missed earnings this time around, with ₹16b revenue coming in 2.6% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹11.64 also fell short of expectations by 11%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Greenpanel Industries

Taking into account the latest results, the consensus forecast from Greenpanel Industries' twelve analysts is for revenues of ₹17.3b in 2025. This reflects a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 10% to ₹12.80. Before this earnings report, the analysts had been forecasting revenues of ₹18.4b and earnings per share (EPS) of ₹17.19 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to ₹370. 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. The most optimistic Greenpanel Industries analyst has a price target of ₹472 per share, while the most pessimistic values it at ₹285. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Greenpanel Industries' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 21% 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 13% 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 Greenpanel Industries.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Greenpanel Industries going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Greenpanel Industries has 3 warning signs (and 1 which is significant) we think you should know about.

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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.