Need To Know: Analysts Are Much More Bullish On Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) Revenues

Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Chambal Fertilisers and Chemicals will make substantially more sales than they'd previously expected.

Following this upgrade, Chambal Fertilisers and Chemicals' three analysts are forecasting 2023 revenues to be ₹241b, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing ₹185b of revenue in 2023. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

Our analysis indicates that CHAMBLFERT is potentially undervalued!

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Chambal Fertilisers and Chemicals' revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2023 being well below the historical 19% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Chambal Fertilisers and Chemicals is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Chambal Fertilisers and Chemicals.

Analysts are clearly in love with Chambal Fertilisers and Chemicals at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading 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.