PG Electroplast Limited Just Reported A Surprise Profit And Analysts Updated Their Estimates

Investors in PG Electroplast Limited (NSE:PGEL) had a good week, as its shares rose 9.4% to close at ₹578 following the release of its second-quarter results. It was overall a positive result, with revenues beating expectations by 4.9% to hit ₹6.6b. PG Electroplast also reported a statutory profit of ₹0.09, which was a nice improvement from the loss that the analysts were predicting. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for PG Electroplast from eight analysts is for revenues of ₹54.9b in 2026. If met, it would imply a notable 8.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 13% to ₹10.08. In the lead-up to this report, the analysts had been modelling revenues of ₹56.9b and earnings per share (EPS) of ₹10.03 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

See our latest analysis for PG Electroplast

It will come as no surprise then, that the consensus price target fell 33% to ₹694following these changes. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on PG Electroplast, with the most bullish analyst valuing it at ₹872 and the most bearish at ₹568 per share. 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.

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 would highlight that PG Electroplast's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2026 being well below the historical 41% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 21% annually. Factoring in the forecast slowdown in growth, it seems obvious that PG Electroplast is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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.

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 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.