Senco Gold Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Senco Gold Limited (NSE:SENCO) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 3.8% to hit ₹18b. Senco Gold also reported a statutory profit of ₹6.38, which was an impressive 145% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Senco Gold from six analysts is for revenues of ₹75.9b in 2026. If met, it would imply a decent 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 18% to ₹15.33. In the lead-up to this report, the analysts had been modelling revenues of ₹74.6b and earnings per share (EPS) of ₹15.04 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Senco Gold

The analysts reconfirmed their price target of ₹505, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Senco Gold, with the most bullish analyst valuing it at ₹607 and the most bearish at ₹400 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Senco Gold's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past year. Compare this to the 72 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 19% per year. So it's pretty clear that, while Senco Gold'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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Senco Gold analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Senco Gold that 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.