Earnings Report: Balaji Amines Limited Missed Revenue Estimates By 15%

It's been a sad week for Balaji Amines Limited (NSE:BALAMINES), who've watched their investment drop 17% to ₹1,433 in the week since the company reported its second-quarter result. Revenues were ₹3.5b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹63.22 being in line with what the analyst anticipated. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Balaji Amines

Taking into account the latest results, Balaji Amines' sole analyst currently expect revenues in 2025 to be ₹14.4b, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 21% to ₹45.30 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹16.5b and earnings per share (EPS) of ₹54.20 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a real cut to earnings per share numbers as well.

The consensus price target fell 30% to ₹1,640, with the weaker earnings outlook clearly leading valuation estimates.

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. We would highlight that revenue is expected to reverse, with a forecast 2.8% annualised decline to the end of 2025. That is a notable change from historical growth of 9.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% 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 the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Balaji Amines' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also see our analysis of Balaji Amines' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.