Dhampur Sugar Mills Limited Just Beat Revenue Estimates By 19%

Last week, you might have seen that Dhampur Sugar Mills Limited (NSE:DHAMPURSUG) released its quarterly result to the market. The early response was not positive, with shares down 4.4% to ₹398 in the past week. Dhampur Sugar Mills beat revenue forecasts by a solid 19% to hit ₹9.0b. Statutory earnings per share came in at ₹34.52, in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Dhampur Sugar Mills

Following the latest results, Dhampur Sugar Mills' twin analysts are now forecasting revenues of ₹42.9b in 2023. This would be a substantial 22% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 41% to ₹50.55. Before this earnings report, the analysts had been forecasting revenues of ₹41.8b and earnings per share (EPS) of ₹50.70 in 2023. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹425, implying that the uplift in sales is not expected to greatly contribute to Dhampur Sugar Mills's valuation in the near term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dhampur Sugar Mills' past performance and to peers in the same industry. The analysts are definitely expecting Dhampur Sugar Mills' growth to accelerate, with the forecast 17% annualised growth to the end of 2023 ranking favourably alongside historical growth of 7.7% 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 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dhampur Sugar Mills to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Before you take the next step you should know about the 3 warning signs for Dhampur Sugar Mills that we have uncovered.

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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.