Senco Gold Limited (NSE:SENCO) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders might have noticed that Senco Gold Limited (NSE:SENCO) filed its quarterly result this time last week. The early response was not positive, with shares down 4.7% to ₹1,078 in the past week. It was a workmanlike result, with revenues of ₹15b coming in 2.2% ahead of expectations, and statutory earnings per share of ₹23.98, in line with analyst appraisals. 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. 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 Senco Gold

Taking into account the latest results, the most recent consensus for Senco Gold from six analysts is for revenues of ₹63.4b in 2025. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.8% to ₹28.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹63.2b and earnings per share (EPS) of ₹32.60 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Despite cutting their earnings forecasts,the analysts have lifted their price target 18% to ₹1,540, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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 ₹1,709 and the most bearish at ₹1,277 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 23% annual growth over the past year. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 22% per year. So although Senco Gold is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Senco Gold. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Senco Gold analysts - 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 2 warning signs 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.