Gujarat Gas Limited Just Beat Revenue By 6.0%: Here's What Analysts Think Will Happen Next

Gujarat Gas Limited (NSE:GUJGASLTD) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were respectable, with statutory earnings of ₹16.61 per share roughly in line with what the analysts had forecast. Revenues of ₹164b came in 6.0% ahead of analyst predictions. 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 Gujarat Gas

Taking into account the latest results, the 14 analysts covering Gujarat Gas provided consensus estimates of ₹159.3b revenue in 2025, which would reflect a noticeable 2.9% decline over the past 12 months. Per-share earnings are expected to step up 20% to ₹19.87. In the lead-up to this report, the analysts had been modelling revenues of ₹169.4b and earnings per share (EPS) of ₹21.06 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of ₹510, suggesting the downgrades are not expected to have a long-term impact on Gujarat Gas' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Gujarat Gas analyst has a price target of ₹676 per share, while the most pessimistic values it at ₹360. 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.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.9% by the end of 2025. This indicates a significant reduction from annual growth of 16% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.9% per year. The forecasts do look bearish for Gujarat Gas, since they're expecting it to shrink faster than the industry.

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. Unfortunately they also cut their revenue estimates for next year. Forecasts imply the business' revenue is expected to perform worse than the wider industry. That said, earnings per share are more important for creating value for shareholders. The consensus price target held steady at ₹510, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Gujarat Gas that you need to be mindful 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.