Fineotex Chemical Limited Just Missed Revenue By 15%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Fineotex Chemical Limited (NSE:FCL) filed its second-quarter result this time last week. The early response was not positive, with shares down 6.5% to ₹348 in the past week. Revenues were ₹1.5b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹10.82 being in line with what the analyst anticipated. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Fineotex Chemical after the latest results.

Check out our latest analysis for Fineotex Chemical

Following the latest results, Fineotex Chemical's single analyst are now forecasting revenues of ₹6.40b in 2025. This would be a notable 9.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to ₹12.00. Before this earnings report, the analyst had been forecasting revenues of ₹7.05b and earnings per share (EPS) of ₹13.70 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 17% to ₹476, with the weaker earnings outlook clearly leading valuation estimates.

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. It's pretty clear that there is an expectation that Fineotex Chemical's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 20% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. So it's pretty clear that, while Fineotex Chemical's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Fineotex Chemical. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Fineotex Chemical's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Fineotex Chemical (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.

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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.