PI Industries Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a sad week for PI Industries Limited (NSE:PIIND), who've watched their investment drop 10% to ₹2,490 in the week since the company reported its first-quarter result. Statutory earnings per share fell badly short of expectations, coming in at ₹16.10, some 21% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹17b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for PI Industries from 24 analysts is for revenues of ₹70.7b in 2027. If met, it would imply a meaningful 8.5% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹76.33, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹74.4b and earnings per share (EPS) of ₹87.87 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.
Check out our latest analysis for PI Industries
It'll come as no surprise then, to learn that the analysts have cut their price target 8.1% to ₹2,939. 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. There are some variant perceptions on PI Industries, with the most bullish analyst valuing it at ₹5,478 and the most bearish at ₹2,002 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting PI Industries' growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.7% 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. PI Industries is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PI Industries. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of PI Industries' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PI Industries going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - PI Industries has 1 warning sign we think 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.