Last week saw the newest quarterly earnings release from Graphite India Limited (NSE:GRAPHITE), an important milestone in the company's journey to build a stronger business. It was not a great result overall. While revenues of ₹8.3b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 19% to hit ₹4.89 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 current consensus from Graphite India's four analysts is for revenues of ₹34.2b in 2027. This would reflect a solid 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 148% to ₹29.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹33.2b and earnings per share (EPS) of ₹32.86 in 2027. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
Check out our latest analysis for Graphite India
The consensus price target was unchanged at ₹948, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. The most optimistic Graphite India analyst has a price target of ₹1,048 per share, while the most pessimistic values it at ₹843. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. One thing stands out from these estimates, which is that Graphite India is forecast to grow faster in the future than it has in the past, with revenues expected to display 22% annualised growth until the end of 2027. If achieved, this would be a much better result than the 1.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 18% per year. So it looks like Graphite India 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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹948, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Graphite India 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 1 warning sign with Graphite India , and understanding it should be part of your investment process.
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