Deepak Nitrite Limited (NSE:DEEPAKNTR) Analysts Are Pretty Bullish On The Stock After Recent Results

Last week saw the newest quarterly earnings release from Deepak Nitrite Limited (NSE:DEEPAKNTR), an important milestone in the company's journey to build a stronger business. It was a pretty mixed result, with revenues beating expectations to hit ₹22b. Statutory earnings fell 2.9% short of analyst forecasts, reaching ₹14.85 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Deepak Nitrite

Taking into account the latest results, the consensus forecast from Deepak Nitrite's 15 analysts is for revenues of ₹88.3b in 2025. This reflects a meaningful 9.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.9% to ₹66.38. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹87.2b and earnings per share (EPS) of ₹70.65 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 8.7% to ₹2,755, suggesting that these impacts are not expected to weigh on the stock's value in the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Deepak Nitrite at ₹3,445 per share, while the most bearish prices it at ₹1,497. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Deepak Nitrite's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. So it's pretty clear that, while Deepak Nitrite's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Deepak Nitrite. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Deepak Nitrite analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Deepak Nitrite's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.