PCBL Chemical Limited Just Missed EPS By 5.3%: Here's What Analysts Think Will Happen Next

PCBL Chemical Limited (NSE:PCBL) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to ₹361 in the week after its latest annual results. It looks like the results were a bit of a negative overall. While revenues of ₹84b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.3% to hit ₹11.48 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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.

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Following the latest results, PCBL Chemical's ten analysts are now forecasting revenues of ₹92.7b in 2026. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 31% to ₹15.08. Before this earnings report, the analysts had been forecasting revenues of ₹95.6b and earnings per share (EPS) of ₹17.48 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

See our latest analysis for PCBL Chemical

Despite the cuts to forecast earnings, there was no real change to the ₹496 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 ₹627 per share, while the most pessimistic values it at ₹372. 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. We would highlight that PCBL Chemical's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2026 being well below the historical 24% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. So it's pretty clear that, while PCBL Chemical's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹496, with the latest estimates not enough to have an impact on their price targets.

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 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for PCBL Chemical (1 can't be ignored) you should be aware of.

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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.