Gujarat Pipavav Port Limited (NSE:GPPL) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Gujarat Pipavav Port Limited (NSE:GPPL) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a workmanlike result, with revenues of ₹2.5b coming in 3.6% ahead of expectations, and statutory earnings per share of ₹2.27, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Gujarat Pipavav Port

Following the latest results, Gujarat Pipavav Port's five analysts are now forecasting revenues of ₹10.6b in 2025. This would be a reasonable 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 12% to ₹8.89. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹10.7b and earnings per share (EPS) of ₹9.44 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹177, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Gujarat Pipavav Port analyst has a price target of ₹249 per share, while the most pessimistic values it at ₹106. 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.

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. It's pretty clear that there is an expectation that Gujarat Pipavav Port's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.5% growth on an annualised basis. This is compared to a historical growth rate of 8.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Gujarat Pipavav Port is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Gujarat Pipavav Port's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Gujarat Pipavav Port. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Gujarat Pipavav Port analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Gujarat Pipavav Port 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.