Industry Analysts Just Made A Substantial Upgrade To Their Gujarat State Fertilizers & Chemicals Limited (NSE:GSFC) Revenue Forecasts

Gujarat State Fertilizers & Chemicals Limited (NSE:GSFC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Gujarat State Fertilizers & Chemicals will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 6.1% over the past week, closing at ₹137. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from Gujarat State Fertilizers & Chemicals' two analysts is for revenues of ₹115b in 2023, which would reflect a substantial 26% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to plunge 27% to ₹16.40 in the same period. Previously, the analysts had been modelling revenues of ₹93b and earnings per share (EPS) of ₹15.00 in 2023. Sentiment certainly seems to have improved in recent times, with a sizeable gain to revenue and a small increase to earnings per share estimates.

See our latest analysis for Gujarat State Fertilizers & Chemicals

It will come as no surprise to learn that the analysts have increased their price target for Gujarat State Fertilizers & Chemicals 8.3% to ₹130 on the back of these upgrades.

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. It's clear from the latest estimates that Gujarat State Fertilizers & Chemicals' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 6.5% p.a. 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Gujarat State Fertilizers & Chemicals to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. 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 State Fertilizers & Chemicals.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Gujarat State Fertilizers & Chemicals going out as far as 2024, and you can see them 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.