Analysts Have Made A Financial Statement On CESC Limited's (NSE:CESC) Third-Quarter Report

There's been a notable change in appetite for CESC Limited (NSE:CESC) shares in the week since its third-quarter report, with the stock down 14% to ₹152. It was a credible result overall, with revenues of ₹36b and statutory earnings per share of ₹10.38 both in line with analyst estimates, showing that CESC is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for CESC

Taking into account the latest results, the consensus forecast from CESC's nine analysts is for revenues of ₹185.0b in 2026. This reflects a notable 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 13% to ₹11.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹181.8b and earnings per share (EPS) of ₹13.14 in 2026. 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.

The consensus price target held steady at ₹200, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic CESC analyst has a price target of ₹250 per share, while the most pessimistic values it at ₹145. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of CESC'shistorical trends, as the 9.5% annualised revenue growth to the end of 2026 is roughly in line with the 9.3% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.3% per year. It's clear that while CESC's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹200, with the latest estimates not enough to have an impact on their price targets.

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.

You should always think about risks though. Case in point, we've spotted 1 warning sign for CESC 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.