Analysts Are Updating Their PVR INOX Limited (NSE:PVRINOX) Estimates After Its First-Quarter Results

Shareholders might have noticed that PVR INOX Limited (NSE:PVRINOX) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.1% to ₹1,430 in the past week. The statutory results were mixed overall, with revenues of ₹12b in line with analyst forecasts, but losses of ₹18.21 per share, some 4.5% larger than the analysts were predicting. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for PVR INOX

After the latest results, the 22 analysts covering PVR INOX are now predicting revenues of ₹67.3b in 2025. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with PVR INOX forecast to report a statutory profit of ₹18.20 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹68.8b and earnings per share (EPS) of ₹30.63 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the ₹1,724 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values PVR INOX at ₹2,420 per share, while the most bearish prices it at ₹1,273. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that PVR INOX's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2025 being well below the historical 22% 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) 10% per year. So it's pretty clear that, while PVR INOX's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 PVR INOX's revenue estimates, but industry data suggests that it is expected to grow faster than 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple PVR INOX analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether PVR INOX is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.

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