Stock Analysis

Godrej Agrovet Limited (NSE:GODREJAGRO) Full-Year Results: Here's What Analysts Are Forecasting For This Year

NSEI:GODREJAGRO
Source: Shutterstock

Godrej Agrovet Limited (NSE:GODREJAGRO) just released its latest annual report and things are not looking great. Godrej Agrovet missed analyst forecasts, with revenues of ₹96b and statutory earnings per share (EPS) of ₹18.71, falling short by 2.2% and 3.3% respectively. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Godrej Agrovet

earnings-and-revenue-growth
NSEI:GODREJAGRO Earnings and Revenue Growth May 11th 2024

Taking into account the latest results, the current consensus from Godrej Agrovet's eight analysts is for revenues of ₹105.5b in 2025. This would reflect a meaningful 9.9% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 28% to ₹23.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹109.5b and earnings per share (EPS) of ₹23.60 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of ₹548, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Godrej Agrovet's market value. 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. There are some variant perceptions on Godrej Agrovet, with the most bullish analyst valuing it at ₹619 and the most bearish at ₹420 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Godrej Agrovet shareholders.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.9% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Godrej Agrovet is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹548, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Godrej Agrovet analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Godrej Agrovet that you should be aware of.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.