Fine Organic Industries Limited (NSE:FINEORG) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Investors in Fine Organic Industries Limited (NSE:FINEORG) had a good week, as its shares rose 5.2% to close at ₹5,461 following the release of its first-quarter results. Revenues of ₹5.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹36.94, missing estimates by 2.8%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fine Organic Industries after the latest results.

View our latest analysis for Fine Organic Industries

Taking into account the latest results, the consensus forecast from Fine Organic Industries' seven analysts is for revenues of ₹22.7b in 2025. This reflects a satisfactory 6.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 3.0% to ₹143. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹22.8b and earnings per share (EPS) of ₹142 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹4,851, 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 ₹6,244 per share, while the most pessimistic values it at ₹3,741. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that Fine Organic Industries' revenue growth is expected to slow, with the forecast 9.3% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹4,851, 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 Fine Organic Industries. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Fine Organic Industries going out to 2027, and you can see them free on our platform here..

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com