Analysts Are Upgrading Dhanuka Agritech Limited (NSE:DHANUKA) After Its Latest Results

The investors in Dhanuka Agritech Limited's (NSE:DHANUKA) will be rubbing their hands together with glee today, after the share price leapt 21% to ₹1,613 in the week following its annual results. Dhanuka Agritech reported ₹20b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹65.55 beat expectations, being 3.0% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Dhanuka Agritech's eight analysts are now forecasting revenues of ₹24.2b in 2026. This would be a solid 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 15% to ₹75.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹22.9b and earnings per share (EPS) of ₹68.87 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

See our latest analysis for Dhanuka Agritech

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹1,781, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Dhanuka Agritech, with the most bullish analyst valuing it at ₹2,138 and the most bearish at ₹1,550 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Dhanuka Agritech's growth to accelerate, with the forecast 19% annualised growth to the end of 2026 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Dhanuka Agritech is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dhanuka Agritech following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₹1,781, 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 Dhanuka Agritech. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Dhanuka Agritech analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Dhanuka Agritech Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.