Fine Organic Industries Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Fine Organic Industries Limited (NSE:FINEORG) released its second-quarter result to the market. The early response was not positive, with shares down 2.1% to ₹4,870 in the past week. Revenues of ₹6.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹38.30, missing estimates by 6.6%. 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. 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 Fine Organic Industries

Following the latest results, Fine Organic Industries' eight analysts are now forecasting revenues of ₹22.7b in 2025. This would be a reasonable 4.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹145, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹22.5b and earnings per share (EPS) of ₹144 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹5,153, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Fine Organic Industries analyst has a price target of ₹6,641 per share, while the most pessimistic values it at ₹3,885. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fine Organic Industries shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fine Organic Industries' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Fine Organic Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Fine Organic Industries is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Fine Organic Industries' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹5,153, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Fine Organic Industries going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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.