CESC Limited (NSE:CESC) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Investors in CESC Limited (NSE:CESC) had a good week, as its shares rose 4.7% to close at ₹165 following the release of its annual results. Revenues of ₹174b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹10.32, missing estimates by 2.6%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from CESC's eight analysts is for revenues of ₹185.3b in 2026. This reflects a modest 6.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 10% to ₹11.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹185.0b and earnings per share (EPS) of ₹11.86 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.

See our latest analysis for CESC

The consensus price target held steady at ₹199, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values CESC at ₹250 per share, while the most bearish prices it at ₹150. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CESC's past performance and to peers in the same industry. It's pretty clear that there is an expectation that CESC's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.7% growth on an annualised basis. This is compared to a historical growth rate of 9.6% 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 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CESC.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CESC. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CESC going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for CESC you should know about.

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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.