Sudarshan Chemical Industries Limited (NSE:SUDARSCHEM) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates
The quarterly results for Sudarshan Chemical Industries Limited (NSE:SUDARSCHEM) were released last week, making it a good time to revisit its performance. Sudarshan Chemical Industries reported in line with analyst predictions, delivering revenues of ₹26b and statutory earnings per share of ₹2.80, suggesting the business is executing well and in line with its plan. 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 most recent consensus for Sudarshan Chemical Industries from seven analysts is for revenues of ₹103.8b in 2027. If met, it would imply an okay 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 319% to ₹38.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹104.1b and earnings per share (EPS) of ₹34.52 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
See our latest analysis for Sudarshan Chemical Industries
The consensus price target was unchanged at ₹1,273, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Sudarshan Chemical Industries at ₹1,422 per share, while the most bearish prices it at ₹924. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sudarshan Chemical Industries shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sudarshan Chemical Industries' past performance and to peers in the same industry. We would highlight that Sudarshan Chemical Industries' revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2027 being well below the historical 36% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sudarshan Chemical Industries is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sudarshan Chemical Industries' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sudarshan Chemical Industries' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹1,273, 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 Sudarshan Chemical Industries 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 Sudarshan Chemical Industries , and understanding these should be part of your investment process.
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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.