Earnings Beat: Pidilite Industries Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
As you might know, Pidilite Industries Limited (NSE:PIDILITIND) just kicked off its latest first-quarter results with some very strong numbers. The company beat expectations with revenues of ₹46b arriving 3.1% ahead of forecasts. Statutory earnings per share (EPS) were ₹8.55, 8.2% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Pidilite Industries from 21 analysts is for revenues of ₹173.4b in 2027. If met, it would imply a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 8.2% to ₹28.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹170.2b and earnings per share (EPS) of ₹26.31 in 2027. So the consensus seems to have become somewhat more optimistic on Pidilite Industries' earnings potential following these results.
See our latest analysis for Pidilite Industries
The consensus price target rose 5.3% to ₹1,741, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Pidilite Industries at ₹2,065 per share, while the most bearish prices it at ₹1,400. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pidilite Industries' past performance and to peers in the same industry. The analysts are definitely expecting Pidilite Industries' growth to accelerate, with the forecast 17% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Pidilite Industries is expected to grow much faster than its 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 Pidilite Industries 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Pidilite Industries analysts - going out to 2029, 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 Pidilite Industries 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.