Analyst Estimates: Here's What Brokers Think Of Greenlam Industries Limited (NSE:GREENLAM) After Its First-Quarter Report
Greenlam Industries Limited (NSE:GREENLAM) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to ₹242 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of ₹8.0b and statutory earnings per share of ₹2.20. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Greenlam Industries' eleven analysts is for revenues of ₹35.9b in 2027. This reflects a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 61% to ₹5.87. Before this earnings report, the analysts had been forecasting revenues of ₹35.7b and earnings per share (EPS) of ₹6.19 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
View our latest analysis for Greenlam Industries
The consensus price target held steady at ₹265, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Greenlam Industries, with the most bullish analyst valuing it at ₹316 and the most bearish at ₹225 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Greenlam Industries' growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Greenlam Industries is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹265, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Greenlam Industries. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Greenlam Industries going out to 2029, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Greenlam Industries that you should be aware 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.