Stock Analysis

Anupam Rasayan India Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

NSEI:ANURAS
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As you might know, Anupam Rasayan India Ltd (NSE:ANURAS) last week released its latest quarterly, and things did not turn out so great for shareholders. Anupam Rasayan India delivered a grave earnings miss, with both revenues (₹2.5b) and statutory earnings per share (₹0.36) falling badly short of analyst expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Anupam Rasayan India

earnings-and-revenue-growth
NSEI:ANURAS Earnings and Revenue Growth August 17th 2024

Taking into account the latest results, the most recent consensus for Anupam Rasayan India from eight analysts is for revenues of ₹17.1b in 2025. If met, it would imply a major 27% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 85% to ₹15.78. Before this earnings report, the analysts had been forecasting revenues of ₹17.6b and earnings per share (EPS) of ₹17.66 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.0% to ₹725. 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. The most optimistic Anupam Rasayan India analyst has a price target of ₹1,075 per share, while the most pessimistic values it at ₹510. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Anupam Rasayan India's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 17% 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 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Anupam Rasayan India is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Anupam Rasayan India. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Anupam Rasayan India's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Anupam Rasayan India. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Anupam Rasayan India analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Anupam Rasayan India 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.