Gujarat Gas Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Gujarat Gas Limited (NSE:GUJGASLTD) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were ₹38b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹4.48, an impressive 21% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Gujarat Gas

Taking into account the latest results, the current consensus from Gujarat Gas' 16 analysts is for revenues of ₹169.0b in 2025. This would reflect a reasonable 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.3% to ₹19.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹171.7b and earnings per share (EPS) of ₹19.26 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹573. 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 Gujarat Gas analyst has a price target of ₹750 per share, while the most pessimistic values it at ₹405. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Gujarat Gas' revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 3.1% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Gujarat Gas is still expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Gujarat Gas' revenue is expected to perform better than the wider industry. The consensus price target held steady at ₹573, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Gujarat Gas. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Gujarat Gas going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Gujarat Gas' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.