Analysts Are More Bearish On Balaji Amines Limited (NSE:BALAMINES) Than They Used To Be

Today is shaping up negative for Balaji Amines Limited (NSE:BALAMINES) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the latest downgrade, the current consensus, from the twin analysts covering Balaji Amines, is for revenues of ₹18b in 2024, which would reflect a discernible 2.8% reduction in Balaji Amines' sales over the past 12 months. Per-share earnings are expected to swell 15% to ₹70.00. Previously, the analysts had been modelling revenues of ₹25b and earnings per share (EPS) of ₹125 in 2024. Indeed, we can see that the analysts are a lot more bearish about Balaji Amines' prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Balaji Amines

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to ₹2,768.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.5% by the end of 2024. This indicates a significant reduction from annual growth of 23% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Balaji Amines is expected to lag 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Balaji Amines.

Uncomfortably, our automated valuation tool also suggests that Balaji Amines stock could be overvalued following the downgrade. Shareholders could be left disappointed if these estimates play out. You can learn more about our valuation methodology for 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 that insiders are buying.

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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.