Analysts Are Updating Their CESC Limited (NSE:CESC) Estimates After Its Second-Quarter Results

Shareholders might have noticed that CESC Limited (NSE:CESC) filed its quarterly result this time last week. The early response was not positive, with shares down 5.9% to ₹175 in the past week. CESC reported in line with analyst predictions, delivering revenues of ₹47b and statutory earnings per share of ₹2.67, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CESC after the latest results.

View our latest analysis for CESC

Taking into account the latest results, the consensus forecast from CESC's nine analysts is for revenues of ₹172.5b in 2025. This reflects a modest 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 12% to ₹11.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹170.3b and earnings per share (EPS) of ₹12.16 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹207, suggesting that the company has met expectations in its recent result. 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 CESC, with the most bullish analyst valuing it at ₹249 and the most bearish at ₹145 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 CESC shareholders.

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. The analysts are definitely expecting CESC's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CESC is expected to grow much faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

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 forecasts for CESC going out to 2027, and you can see them free on our platform here.

Even so, be aware that CESC is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.