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

A week ago, PCBL Limited (NSE:PCBL) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of ₹58b arriving 3.5% ahead of forecasts. Statutory earnings per share (EPS) were ₹11.70, 4.5% ahead of estimates. Following the result, the analyst has 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 analyst has changed their mind on PCBL after the latest results.

See our latest analysis for PCBL

Taking into account the latest results, PCBL's single analyst currently expect revenues in 2024 to be ₹58.2b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 5.9% to ₹12.40. In the lead-up to this report, the analyst had been modelling revenues of ₹55.2b and earnings per share (EPS) of ₹12.90 in 2024. So it's pretty clear consensus is mixed on PCBL after the latest results; whilethe analyst lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

There's been no major changes to the price target of ₹179, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation.

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 PCBL's revenue growth is expected to slow, with the forecast 0.1% annualised growth rate until the end of 2024 being well below the historical 15% 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 11% 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 PCBL.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. The consensus price target held steady at ₹179, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on PCBL. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You still need to take note of risks, for example - PCBL has 2 warning signs (and 1 which is concerning) 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.