Senco Gold Limited (NSE:SENCO) Just Reported And Analysts Have Been Lifting Their Price Targets

Last week saw the newest full-year earnings release from Senco Gold Limited (NSE:SENCO), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of ₹53b were in line with what the analysts predicted, Senco Gold surprised by delivering a statutory profit of ₹23.98 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Senco Gold after the latest results.

See our latest analysis for Senco Gold

After the latest results, the three analysts covering Senco Gold are now predicting revenues of ₹63.3b in 2025. If met, this would reflect a decent 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 28% to ₹29.80. In the lead-up to this report, the analysts had been modelling revenues of ₹62.9b and earnings per share (EPS) of ₹31.60 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 19% to ₹1,135, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Senco Gold at ₹1,277 per share, while the most bearish prices it at ₹1,029. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Senco Gold's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Senco Gold is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Senco Gold going out to 2027, and you can see them free on our platform here.

Even so, be aware that Senco Gold is showing 2 warning signs in our investment analysis , 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.