PG Electroplast Limited Just Beat Revenue By 12%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that PG Electroplast Limited (NSE:PGEL) released its quarterly result to the market. The early response was not positive, with shares down 5.8% to ₹630 in the past week. It was a mildly positive result, with revenues exceeding expectations at ₹6.7b, while statutory earnings per share (EPS) of ₹5.41 were in line with analyst forecasts. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for PG Electroplast

After the latest results, the five analysts covering PG Electroplast are now predicting revenues of ₹41.5b in 2025. If met, this would reflect a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 28% to ₹9.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹37.0b and earnings per share (EPS) of ₹8.40 in 2025. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of ₹570, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 PG Electroplast at ₹780 per share, while the most bearish prices it at ₹221. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PG Electroplast's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of PG Electroplast'shistorical trends, as the 33% annualised revenue growth to the end of 2025 is roughly in line with the 40% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 25% per year. So it's pretty clear that PG Electroplast is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around PG Electroplast's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹570, with the latest estimates not enough to have an impact on their price targets.

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 PG Electroplast analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with PG Electroplast (including 1 which is potentially serious) .

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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.