Analysts Have Made A Financial Statement On PVR INOX Limited's (NSE:PVRINOX) Second-Quarter Report

Simply Wall St · 10/18 00:08

The second-quarter results for PVR INOX Limited (NSE:PVRINOX) were released last week, making it a good time to revisit its performance. It looks like a positive result overall, with revenues of ₹16b beating forecasts by 4.8%. Statutory losses of ₹1.20 per share were roughly in line with what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PVR INOX after the latest results.

See our latest analysis for PVR INOX

earnings-and-revenue-growth
NSEI:PVRINOX Earnings and Revenue Growth October 18th 2024

Taking into account the latest results, the consensus forecast from PVR INOX's 22 analysts is for revenues of ₹65.6b in 2025. This reflects a notable 17% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with PVR INOX forecast to report a statutory profit of ₹27.32 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹66.2b and earnings per share (EPS) of ₹25.02 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of ₹1,833, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on PVR INOX, with the most bullish analyst valuing it at ₹2,450 and the most bearish at ₹1,399 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The analysts are definitely expecting PVR INOX's growth to accelerate, with the forecast 37% annualised growth to the end of 2025 ranking favourably alongside historical growth of 27% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect PVR INOX to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards PVR INOX following these results. 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. The consensus price target held steady at ₹1,833, 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. We have forecasts for PVR INOX going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether PVR INOX's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.