This Analyst Just Downgraded Their Balaji Amines Limited (NSE:BALAMINES) EPS Forecasts

Market forces rained on the parade of Balaji Amines Limited (NSE:BALAMINES) shareholders today, when the covering analyst downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following this downgrade, Balaji Amines' one analyst are forecasting 2025 revenues to be ₹14b, approximately in line with the last 12 months. Statutory earnings per share are supposed to crater 21% to ₹45.30 in the same period. Previously, the analyst had been modelling revenues of ₹16b and earnings per share (EPS) of ₹54.20 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

See our latest analysis for Balaji Amines

It'll come as no surprise then, to learn that the analyst has cut their price target 30% to ₹1,640.

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 sales are expected to reverse, with a forecast 2.8% annualised revenue 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 biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Balaji Amines. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Balaji Amines' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

In light of the downgrade, our automated discounted cash flow valuation tool suggests that Balaji Amines could now be moderately overvalued. 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 with high insider ownership.

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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.