Earnings Update: Chemplast Sanmar Limited (NSE:CHEMPLASTS) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Chemplast Sanmar Limited (NSE:CHEMPLASTS) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It definitely looks like a negative result overall with revenues falling 14% short of analyst estimates at ₹8.9b. Statutory losses were ₹5.65 per share, 95% bigger than what the analysts expected. The analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Chemplast Sanmar after the latest results.

View our latest analysis for Chemplast Sanmar

After the latest results, the four analysts covering Chemplast Sanmar are now predicting revenues of ₹50.8b in 2025. If met, this would reflect a huge 26% improvement in revenue compared to the last 12 months. Chemplast Sanmar is also expected to turn profitable, with statutory earnings of ₹27.63 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹53.5b and earnings per share (EPS) of ₹28.40 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹545 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Chemplast Sanmar at ₹580 per share, while the most bearish prices it at ₹520. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 21% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So it's pretty clear that Chemplast Sanmar is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Chemplast Sanmar. They also downgraded Chemplast Sanmar's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹545, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Chemplast Sanmar. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Chemplast Sanmar analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Chemplast Sanmar's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.