Deepak Fertilisers And Petrochemicals Corporation Limited Just Recorded A 17% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, Deepak Fertilisers And Petrochemicals Corporation Limited (NSE:DEEPAKFERT) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. Deepak Fertilisers And Petrochemicals beat earnings, with revenues hitting ₹88b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 17%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Deepak Fertilisers And Petrochemicals

Following the latest results, Deepak Fertilisers And Petrochemicals' twin analysts are now forecasting revenues of ₹97.1b in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 60% to ₹56.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹95.5b and earnings per share (EPS) of ₹51.05 in 2025. So the consensus seems to have become somewhat more optimistic on Deepak Fertilisers And Petrochemicals' earnings potential following these results.

There's been no major changes to the consensus price target of ₹684, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

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. It's pretty clear that there is an expectation that Deepak Fertilisers And Petrochemicals' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this to the 318 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it looks like Deepak Fertilisers And Petrochemicals is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Deepak Fertilisers And Petrochemicals' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹684, with the latest estimates not enough to have an impact on their price targets.

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.

And what about risks? Every company has them, and we've spotted 3 warning signs for Deepak Fertilisers And Petrochemicals (of which 1 makes us a bit uncomfortable!) you should know about.

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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.