Broker Revenue Forecasts For Hindustan Petroleum Corporation Limited (NSE:HINDPETRO) Are Surging Higher

Shareholders in Hindustan Petroleum Corporation Limited (NSE:HINDPETRO) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Hindustan Petroleum's eleven analysts is for revenues of ₹3.3t in 2022 which - if met - would reflect a major 26% increase on its sales over the past 12 months. Statutory earnings per share are supposed to nosedive 32% to ₹47.49 in the same period. Prior to this update, the analysts had been forecasting revenues of ₹3.0t and earnings per share (EPS) of ₹45.74 in 2022. The most recent forecasts are noticeably more optimistic, with a decent improvement in revenue estimates and a lift to earnings per share as well.

View our latest analysis for Hindustan Petroleum

Despite these upgrades, the analysts have not made any major changes to their price target of ₹335, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hindustan Petroleum, with the most bullish analyst valuing it at ₹515 and the most bearish at ₹239 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's clear from the latest estimates that Hindustan Petroleum's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 14% over the past year. 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Hindustan Petroleum is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Hindustan Petroleum.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Hindustan Petroleum going out to 2024, and you can see them free on our platform here..

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. 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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