Analysts Just Shaved Their PTC Industries Limited (NSE:PTCIL) Forecasts Dramatically

The analysts covering PTC Industries Limited (NSE:PTCIL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon. Shares are up 5.5% to ₹11,721 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

Following the downgrade, the most recent consensus for PTC Industries from its dual analysts is for revenues of ₹4.1b in 2025 which, if met, would be a major 62% increase on its sales over the past 12 months. Per-share earnings are expected to jump 75% to ₹52.55. Prior to this update, the analysts had been forecasting revenues of ₹4.6b and earnings per share (EPS) of ₹61.20 in 2025. Indeed, we can see that the analysts are a lot more bearish about PTC Industries' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for PTC Industries

The average price target climbed 20% to ₹19,862 despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting PTC Industries' growth to accelerate, with the forecast 62% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect PTC Industries to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for PTC Industries. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The rising price target is a puzzle, but still - with a serious cut to this year's outlook, we wouldn't be surprised if investors were a bit wary of PTC Industries.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with PTC Industries' financials, such as recent substantial insider selling. Learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.