This Rajesh Exports Limited (NSE:RAJESHEXPO) Analyst Is Way More Bearish Than They Used To Be

One thing we could say about the covering analyst on Rajesh Exports Limited (NSE:RAJESHEXPO) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for Rajesh Exports from its solo analyst is for revenues of ₹2.6t in 2022 which, if met, would be a decent 8.1% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 63% to ₹45.62. Previously, the analyst had been modelling revenues of ₹3.0t and earnings per share (EPS) of ₹72.17 in 2022. Indeed, we can see that the analyst is a lot more bearish about Rajesh Exports' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Rajesh Exports

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Rajesh Exports' rate of growth is expected to accelerate meaningfully, with the forecast 8.1% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 1.1% p.a. 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 17% per year. So it's clear that despite the acceleration in growth, Rajesh Exports is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Rajesh Exports. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Rajesh Exports' revenues are expected to grow slower than the wider market. After a cut like that, investors could be forgiven for thinking the analyst is a lot more bearish on Rajesh Exports, and a few readers might choose to steer clear of the stock.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Rajesh Exports going out as far as 2024, and you can see them 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.
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