Revenue Beat: PG Electroplast Limited Exceeded Revenue Forecasts By 16% And Analysts Are Updating Their Estimates

PG Electroplast Limited (NSE:PGEL) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 16% higher than the analysts had forecast, at ₹9.7b, while EPS of ₹1.45 beat analyst models by 12%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for PG Electroplast

Following the latest results, PG Electroplast's six analysts are now forecasting revenues of ₹52.8b in 2026. This would be a substantial 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 79% to ₹13.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.0b and earnings per share (EPS) of ₹10.57 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The consensus price target rose 62% to ₹885, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. The most optimistic PG Electroplast analyst has a price target of ₹1,148 per share, while the most pessimistic values it at ₹544. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that PG Electroplast's revenue growth is expected to slow, with the forecast 24% annualised growth rate until the end of 2026 being well below the historical 41% p.a. growth over the last five years. Compare this to the 67 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 25% per year. 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards PG Electroplast 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. 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. At Simply Wall St, we have a full range of analyst estimates for PG Electroplast going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for PG Electroplast that we have uncovered.

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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.