CESC Limited Beat Revenue Forecasts By 6.6%: Here's What Analysts Are Forecasting Next

CESC Limited (NSE:CESC) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of ₹49b arriving 6.6% ahead of forecasts. Statutory earnings per share (EPS) were ₹2.85, 3.6% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for CESC

Following the latest results, CESC's ten analysts are now forecasting revenues of ₹170.3b in 2025. This would be a satisfactory 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 13% to ₹12.04. Before this earnings report, the analysts had been forecasting revenues of ₹167.4b and earnings per share (EPS) of ₹11.69 in 2025. So the consensus seems to have become somewhat more optimistic on CESC's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 20% to ₹192. 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. There are some variant perceptions on CESC, with the most bullish analyst valuing it at ₹244 and the most bearish at ₹130 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of CESC'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 8.6% 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 10% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CESC's earnings potential next year. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for CESC 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 CESC that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.