These Analysts Think Aegis Logistics Limited's (NSE:AEGISCHEM) Sales Are Under Threat

The latest analyst coverage could presage a bad day for Aegis Logistics Limited (NSE:AEGISCHEM), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from Aegis Logistics' five analysts is for revenues of ₹104b in 2024, which would reflect a meaningful 18% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 9.7% to ₹14.47. Prior to this update, the analysts had been forecasting revenues of ₹118b and earnings per share (EPS) of ₹15.63 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a small dip in earnings per share numbers as well.

Check out our latest analysis for Aegis Logistics

Analysts made no major changes to their price target of ₹395, suggesting the downgrades are not expected to have a long-term impact on Aegis Logistics' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Aegis Logistics analyst has a price target of ₹480 per share, while the most pessimistic values it at ₹297. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The analysts are definitely expecting Aegis Logistics' growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aegis Logistics is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Aegis Logistics after today.

There might be good reason for analyst bearishness towards Aegis Logistics, like concerns around earnings quality. Learn more, and discover the 2 other warning signs we've identified, 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.