These Analysts Think V.I.P. Industries Limited's (NSE:VIPIND) Sales Are Under Threat

The latest analyst coverage could presage a bad day for V.I.P. Industries Limited (NSE:VIPIND), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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Following the downgrade, the current consensus from V.I.P. Industries' eleven analysts is for revenues of ₹20b in 2026 which - if met - would reflect an okay 2.9% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing ₹22b of revenue in 2026. It looks like forecasts have become a fair bit less optimistic on V.I.P. Industries, given the substantial drop in revenue estimates.

See our latest analysis for V.I.P. Industries

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. We would highlight that V.I.P. Industries' revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2026 being well below the historical 20% 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 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than V.I.P. Industries.

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. 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 V.I.P. Industries after today.

Worse, V.I.P. Industries is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.