Pennar Industries Limited (NSE:PENIND) Analysts Are Pretty Bullish On The Stock After Recent Results

Investors in Pennar Industries Limited (NSE:PENIND) had a good week, as its shares rose 7.9% to close at ₹147 following the release of its yearly results. It was a workmanlike result, with revenues of ₹32b coming in 2.4% ahead of expectations, and statutory earnings per share of ₹7.29, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Pennar Industries

Taking into account the latest results, the current consensus from Pennar Industries' single analyst is for revenues of ₹34.9b in 2025. This would reflect a solid 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 28% to ₹9.30. Before this earnings report, the analyst had been forecasting revenues of ₹35.0b and earnings per share (EPS) of ₹9.60 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analyst has lifted their price target 6.3% to ₹186, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

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. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.5% per year. It's clear that while Pennar Industries' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pennar Industries. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Pennar Industries that you need to be mindful 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.