Earnings Miss: Shaily Engineering Plastics Limited Missed EPS By 6.6% And Analysts Are Revising Their Forecasts
It's been a pretty great week for Shaily Engineering Plastics Limited (NSE:SHAILY) shareholders, with its shares surging 12% to ₹3,458 in the week since its latest quarterly results. Revenues of ₹2.8b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹10.41, missing estimates by 6.6%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shaily Engineering Plastics after the latest results.
Following the latest results, Shaily Engineering Plastics' six analysts are now forecasting revenues of ₹12.7b in 2027. This would be a huge 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 40% to ₹53.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12.8b and earnings per share (EPS) of ₹53.77 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Shaily Engineering Plastics
The consensus price target rose 11% to ₹3,917despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Shaily Engineering Plastics' earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Shaily Engineering Plastics, with the most bullish analyst valuing it at ₹4,506 and the most bearish at ₹3,555 per share. This is a very narrow spread of estimates, implying either that Shaily Engineering Plastics is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shaily Engineering Plastics' past performance and to peers in the same industry. It's clear from the latest estimates that Shaily Engineering Plastics' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shaily Engineering Plastics is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shaily Engineering Plastics going out to 2029, and you can see them free on our platform here.
You can also see whether Shaily Engineering Plastics is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.