Stock Analysis

Analyst Estimates: Here's What Brokers Think Of Anupam Rasayan India Limited (NSE:ANURAS) After Its Full-Year Report

NSEI:ANURAS
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Last week saw the newest annual earnings release from Anupam Rasayan India Limited (NSE:ANURAS), an important milestone in the company's journey to build a stronger business. It was a pretty mixed result, with revenues beating expectations to hit ₹15b. Statutory earnings fell 3.8% short of analyst forecasts, reaching ₹11.87 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Anupam Rasayan India

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NSEI:ANURAS Earnings and Revenue Growth May 22nd 2024

Taking into account the latest results, the most recent consensus for Anupam Rasayan India from eight analysts is for revenues of ₹18.0b in 2025. If met, it would imply a notable 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 61% to ₹18.90. Before this earnings report, the analysts had been forecasting revenues of ₹18.3b and earnings per share (EPS) of ₹19.50 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹817, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Anupam Rasayan India, with the most bullish analyst valuing it at ₹1,075 and the most bearish at ₹565 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Anupam Rasayan India's past performance and to peers in the same industry. We would highlight that Anupam Rasayan India's revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2025 being well below the historical 26% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. Even after the forecast slowdown in growth, it seems obvious that Anupam Rasayan India is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹817, 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 forecasts for Anupam Rasayan India going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Anupam Rasayan India has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.