Earnings Update: PCBL Chemical Limited (NSE:PCBL) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that PCBL Chemical Limited (NSE:PCBL) filed its quarterly result this time last week. The early response was not positive, with shares down 6.8% to ₹411 in the past week. Revenues of ₹22b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹3.26, missing estimates by 4.1%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for PCBL Chemical

Following the latest results, PCBL Chemical's eight analysts are now forecasting revenues of ₹86.9b in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.4% to ₹14.24. Before this earnings report, the analysts had been forecasting revenues of ₹87.7b and earnings per share (EPS) of ₹15.79 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at ₹535, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 PCBL Chemical analyst has a price target of ₹635 per share, while the most pessimistic values it at ₹375. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await PCBL Chemical shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PCBL Chemical's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 21% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although PCBL Chemical is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PCBL Chemical. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple PCBL Chemical analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - PCBL Chemical has 2 warning signs (and 1 which shouldn't be ignored) 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.