News Flash: One NBCC (India) Limited (NSE:NBCC) Analyst Has Been Trimming Their Revenue Forecasts

The analyst covering NBCC (India) Limited (NSE:NBCC) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, NBCC (India)'s single analyst is now forecasting revenues of ₹85b in 2023. This would be a satisfactory 7.4% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of ₹94b in 2023. It looks like forecasts have become a fair bit less optimistic on NBCC (India), given the measurable cut to revenue estimates.

Check out our latest analysis for NBCC (India)

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NBCC (India)'s past performance and to peers in the same industry. The analyst is definitely expecting NBCC (India)'s growth to accelerate, with the forecast 5.9% annualised growth to the end of 2023 ranking favourably alongside historical growth of 2.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. So it's clear that despite the acceleration in growth, NBCC (India) is expected to grow meaningfully slower than the industry average.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for NBCC (India) next year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on NBCC (India) after today.

Need some more information? One NBCC (India) broker/analyst has provided estimates out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.