Revenue Downgrade: Here's What Analysts Forecast For Kewal Kiran Clothing Limited (NSE:KKCL)

The analysts covering Kewal Kiran Clothing Limited (NSE:KKCL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from twin analysts covering Kewal Kiran Clothing is for revenues of ₹3.5b in 2021, implying a not inconsiderable 17% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹4.6b in 2021. The consensus view seems to have become more pessimistic on Kewal Kiran Clothing, noting the sizeable cut to revenue estimates in this update.

Check out our latest analysis for Kewal Kiran Clothing

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 17%, a significant reduction from annual growth of 3.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.8% annually for the foreseeable future. It's pretty clear that Kewal Kiran Clothing's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Kewal Kiran Clothing after today.

Looking to learn more? We have estimates for Kewal Kiran Clothing from its twin analysts out until 2022, and you can see them free on our platform here.

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