Stock Analysis

Galaxy Surfactants Limited (NSE:GALAXYSURF) Just Released Its First-Quarter Earnings: Here's What Analysts Think

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NSEI:GALAXYSURF

Galaxy Surfactants Limited (NSE:GALAXYSURF) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of ₹9.7b and statutory earnings per share of ₹22.48 both in line with analyst estimates, showing that Galaxy Surfactants is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Galaxy Surfactants

NSEI:GALAXYSURF Earnings and Revenue Growth August 12th 2024

After the latest results, the twelve analysts covering Galaxy Surfactants are now predicting revenues of ₹43.1b in 2025. If met, this would reflect a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to ₹101. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹42.4b and earnings per share (EPS) of ₹100 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.

The analysts reconfirmed their price target of ₹3,155, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Galaxy Surfactants, with the most bullish analyst valuing it at ₹3,903 and the most bearish at ₹2,520 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Galaxy Surfactants' growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Galaxy Surfactants is expected to grow much faster than its industry.

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, 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Galaxy Surfactants analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Galaxy Surfactants 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.