Carysil Limited (NSE:CARYSIL) Analysts Are Pretty Bullish On The Stock After Recent Results
Last week saw the newest quarterly earnings release from Carysil Limited (NSE:CARYSIL), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹2.6b and statutory earnings per share of ₹34.52 both in line with analyst estimates, showing that Carysil is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Carysil's four analysts is for revenues of ₹10.7b in 2027. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 13% to ₹42.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹11.0b and earnings per share (EPS) of ₹37.69 in 2027. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the decent improvement in to the earnings per share numbers.
View our latest analysis for Carysil
The average price target rose 20% to ₹1,401, with the analysts signalling that the improved earnings outlook is the key driver of value for shareholders - enough to offset the reduction in revenue estimates. 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 Carysil analyst has a price target of ₹1,482 per share, while the most pessimistic values it at ₹1,310. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Carysil is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Carysil'shistorical trends, as the 15% annualised revenue growth to the end of 2027 is roughly in line with the 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. It's clear that while Carysil'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 Carysil's earnings potential next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, earnings per share are more important to value creation for shareholders. 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 in mind, we wouldn't be too quick to come to a conclusion on Carysil. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Carysil analysts - going out to 2029, and you can see them free on our platform here.
You can also see whether Carysil is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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