Industry Analysts Just Made A Meaningful Upgrade To Their Gujarat Fluorochemicals Limited (NSE:FLUOROCHEM) Revenue Forecasts

Gujarat Fluorochemicals Limited (NSE:FLUOROCHEM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 9.9% over the past week, closing at ₹2,315. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Gujarat Fluorochemicals' three analysts are now forecasting revenues of ₹35b in 2022. This would be a reasonable 5.0% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹30b in 2022. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

Check out our latest analysis for Gujarat Fluorochemicals

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gujarat Fluorochemicals' past performance and to peers in the same industry. We would highlight that Gujarat Fluorochemicals' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2022 being well below the historical 41% growth over the last year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Gujarat Fluorochemicals is also expected to grow slower than other industry participants.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Gujarat Fluorochemicals this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Gujarat Fluorochemicals.

Want more information? At least one of Gujarat Fluorochemicals' three analysts has provided estimates out to 2024, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.