Praj Industries Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Praj Industries Limited (NSE:PRAJIND) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of ₹7.2b, some 4.2% above estimates, and statutory earnings per share (EPS) coming in at ₹0.63, 215% ahead of expectations. 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.
Following the latest results, Praj Industries' six analysts are now forecasting revenues of ₹33.8b in 2027. This would be a satisfactory 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 277% to ₹6.18. Before this earnings report, the analysts had been forecasting revenues of ₹33.7b and earnings per share (EPS) of ₹7.80 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.
See our latest analysis for Praj Industries
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹369, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. Currently, the most bullish analyst values Praj Industries at ₹398 per share, while the most bearish prices it at ₹348. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Praj Industries is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Praj Industries' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Praj Industries' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 8.1% 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 13% 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 Praj Industries.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Praj Industries. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹369, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Praj Industries analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Praj Industries .
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