CESC Limited (NSE:CESC) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
CESC Limited (NSE:CESC) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of ₹56b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.0% to hit ₹3.20 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from CESC's eleven analysts is for revenues of ₹209.7b in 2027. This reflects a decent 9.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.8% to ₹12.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹210.3b and earnings per share (EPS) of ₹12.64 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for CESC
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹196. 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 CESC, with the most bullish analyst valuing it at ₹224 and the most bearish at ₹145 per share. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that CESC's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CESC to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 forecasts for CESC going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with CESC , and understanding them should be part of your investment process.
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