Senco Gold Limited Just Beat EPS By 42%: Here's What Analysts Think Will Happen Next

It's been a good week for Senco Gold Limited (NSE:SENCO) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.6% to ₹1,115. Revenues of ₹14b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹6.61 an impressive 42% ahead of estimates. Following the result, the analysts have 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Senco Gold

After the latest results, the four analysts covering Senco Gold are now predicting revenues of ₹63.2b in 2025. If met, this would reflect a solid 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to ₹31.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹63.5b and earnings per share (EPS) of ₹29.87 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 6.8% to ₹1,305, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Senco Gold, with the most bullish analyst valuing it at ₹1,400 and the most bearish at ₹1,191 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Senco Gold is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Senco Gold'shistorical trends, as the 25% annualised revenue growth to the end of 2025 is roughly in line with the 22% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 22% annually. It's clear that while Senco Gold's 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 takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Senco Gold's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Senco Gold going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Senco Gold 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.