Apcotex Industries Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Apcotex Industries Limited (NSE:APCOTEXIND) defied analyst predictions to release its full-year results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 7.5% to hit ₹5.5b. Apcotex Industries also reported a statutory profit of ₹8.52, which was an impressive 25% above what the analyst had forecast. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for Apcotex Industries

Taking into account the latest results, the consensus forecast from Apcotex Industries' single analyst is for revenues of ₹7.00b in 2022, which would reflect a major 28% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 56% to ₹13.30. Before this earnings report, the analyst had been forecasting revenues of ₹5.91b and earnings per share (EPS) of ₹8.30 in 2022. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 110% to ₹210per share.

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 analyst is definitely expecting Apcotex Industries' growth to accelerate, with the forecast 28% annualised growth to the end of 2022 ranking favourably alongside historical growth of 7.4% 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 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Apcotex Industries is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Apcotex Industries' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for Apcotex Industries going out as far as 2023, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Apcotex Industries you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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