Stock Analysis

Here's What Analysts Are Forecasting For Chemplast Sanmar Limited (NSE:CHEMPLASTS) After Its Full-Year Results

NSEI:CHEMPLASTS
Source: Shutterstock

Chemplast Sanmar Limited (NSE:CHEMPLASTS) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results don't look great, especially considering that statutory losses grew 31% to₹10.02 per share. Revenues of ₹40b did beat expectations by 5.5%, but it looks like a bit of a cold comfort. 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.

See our latest analysis for Chemplast Sanmar

earnings-and-revenue-growth
NSEI:CHEMPLASTS Earnings and Revenue Growth May 24th 2024

After the latest results, the three analysts covering Chemplast Sanmar are now predicting revenues of ₹50.1b in 2025. If met, this would reflect a major 25% improvement in revenue compared to the last 12 months. Chemplast Sanmar is also expected to turn profitable, with statutory earnings of ₹27.75 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹46.9b and earnings per share (EPS) of ₹28.30 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹537, implying that the uplift in revenue is not expected to greatly contribute to Chemplast Sanmar's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Chemplast Sanmar at ₹580 per share, while the most bearish prices it at ₹470. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Chemplast Sanmar's growth to accelerate, with the forecast 25% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chemplast Sanmar is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Chemplast Sanmar going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Chemplast Sanmar has 1 warning sign we think you should be aware of.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.