Stock Analysis

The Galaxy Surfactants Limited (NSE:GALAXYSURF) Full-Year Results Are Out And Analysts Have Published New Forecasts

NSEI:GALAXYSURF
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Shareholders might have noticed that Galaxy Surfactants Limited (NSE:GALAXYSURF) filed its full-year result this time last week. The early response was not positive, with shares down 4.6% to ₹2,493 in the past week. Galaxy Surfactants reported in line with analyst predictions, delivering revenues of ₹38b and statutory earnings per share of ₹85.03, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Galaxy Surfactants

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NSEI:GALAXYSURF Earnings and Revenue Growth May 25th 2024

Taking into account the latest results, the most recent consensus for Galaxy Surfactants from eleven analysts is for revenues of ₹42.2b in 2025. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 17% to ₹99.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹41.9b and earnings per share (EPS) of ₹102 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹3,092, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Galaxy Surfactants analyst has a price target of ₹3,739 per share, while the most pessimistic values it at ₹2,440. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Galaxy Surfactants'historical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 12% annually. So although Galaxy Surfactants is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Galaxy Surfactants. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Galaxy Surfactants' revenue is expected to perform worse 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.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Galaxy Surfactants , and understanding this should be part of your investment process.

Valuation is complex, but we're helping make it simple.

Find out whether Galaxy Surfactants is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.