The Consensus EPS Estimates For Archean Chemical Industries Limited (NSE:ACI) Just Fell Dramatically

The latest analyst coverage could presage a bad day for Archean Chemical Industries Limited (NSE:ACI), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After this downgrade, Archean Chemical Industries' seven analysts are now forecasting revenues of ₹14b in 2025. This would be a substantial 25% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 32% to ₹23.43. Before this latest update, the analysts had been forecasting revenues of ₹16b and earnings per share (EPS) of ₹30.34 in 2025. Indeed, we can see that the analysts are a lot more bearish about Archean Chemical Industries' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Archean Chemical Industries

It'll come as no surprise then, to learn that the analysts have cut their price target 6.2% to ₹835.

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. It's clear from the latest estimates that Archean Chemical Industries' rate of growth is expected to accelerate meaningfully, with the forecast 56% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.8% p.a. over the past three years. 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Archean Chemical Industries to grow faster than the wider 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 scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Archean Chemical Industries going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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.