PG Electroplast Limited Just Missed EPS By 32%: Here's What Analysts Think Will Happen Next

PG Electroplast Limited (NSE:PGEL) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹15b, statutory earnings missed forecasts by an incredible 32%, coming in at just ₹2.33 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PG Electroplast after the latest results.

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Taking into account the latest results, the current consensus from PG Electroplast's seven analysts is for revenues of ₹57.1b in 2026. This would reflect a decent 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 35% to ₹12.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹63.3b and earnings per share (EPS) of ₹14.40 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

Check out our latest analysis for PG Electroplast

It'll come as no surprise then, to learn that the analysts have cut their price target 7.3% to ₹961. 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. Currently, the most bullish analyst values PG Electroplast at ₹1,131 per share, while the most bearish prices it at ₹731. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await PG Electroplast shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that PG Electroplast's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2026 being well below the historical 42% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 20% annually. Factoring in the forecast slowdown in growth, it looks like PG Electroplast is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PG Electroplast. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of PG Electroplast's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PG Electroplast 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 PG Electroplast 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.