Gujarat Fluorochemicals Limited Just Missed Earnings - But Analysts Have Updated Their Models

Gujarat Fluorochemicals Limited (NSE:FLUOROCHEM) shareholders are probably feeling a little disappointed, since its shares fell 8.7% to ₹3,307 in the week after its latest yearly results. Revenues were in line with forecasts, at ₹43b, although statutory earnings per share came in 11% below what the analysts expected, at ₹39.60 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Gujarat Fluorochemicals after the latest results.

See our latest analysis for Gujarat Fluorochemicals

After the latest results, the ten analysts covering Gujarat Fluorochemicals are now predicting revenues of ₹57.1b in 2025. If met, this would reflect a major 32% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 102% to ₹80.01. In the lead-up to this report, the analysts had been modelling revenues of ₹57.6b and earnings per share (EPS) of ₹87.64 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹3,710, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Gujarat Fluorochemicals analyst has a price target of ₹4,697 per share, while the most pessimistic values it at ₹2,700. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Gujarat Fluorochemicals' growth to accelerate, with the forecast 32% annualised growth to the end of 2025 ranking favourably alongside historical growth of 19% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Gujarat Fluorochemicals is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹3,710, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Gujarat Fluorochemicals analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Gujarat Fluorochemicals that you need to take into consideration.

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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.