PCBL Chemical Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
PCBL Chemical Limited (NSE:PCBL) shareholders are probably feeling a little disappointed, since its shares fell 7.7% to ₹388 in the week after its latest quarterly results. Revenues were in line with forecasts, at ₹21b, although statutory earnings per share came in 18% below what the analysts expected, at ₹2.50 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PCBL Chemical after the latest results.
After the latest results, the ten analysts covering PCBL Chemical are now predicting revenues of ₹92.1b in 2026. If met, this would reflect a notable 10.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 33% to ₹14.49. Before this earnings report, the analysts had been forecasting revenues of ₹92.5b and earnings per share (EPS) of ₹14.66 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for PCBL Chemical
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹466. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic PCBL Chemical analyst has a price target of ₹600 per share, while the most pessimistic values it at ₹394. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. It's pretty clear that there is an expectation that PCBL Chemical's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. Compare this to the 342 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it looks like PCBL Chemical is forecast to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 PCBL Chemical. Long-term earnings power is much more important than next year's profits. We have forecasts for PCBL Chemical going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with PCBL Chemical (at least 1 which makes us a bit uncomfortable) , and understanding these should be part of your investment process.
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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.