New Forecasts: Here's What Analysts Think The Future Holds For India Pesticides Limited (NSE:IPL)

India Pesticides Limited (NSE:IPL) 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.

Following the upgrade, the most recent consensus for India Pesticides from its dual analysts is for revenues of ₹9.0b in 2023 which, if met, would be a solid 18% increase on its sales over the past 12 months. Statutory earnings per share are presumed to ascend 14% to ₹15.60. Previously, the analysts had been modelling revenues of ₹8.2b and earnings per share (EPS) of ₹14.80 in 2023. Sentiment certainly seems to have improved in recent times, with a substantial gain in revenue and a modest lift to earnings per share estimates.

Check out our latest analysis for India Pesticides

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting India Pesticides' growth to accelerate, with the forecast 25% annualised growth to the end of 2023 ranking favourably alongside historical growth of 17% per annum over the past year. 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 India Pesticides is expected to grow much faster than its 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 India Pesticides.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for India Pesticides going out as far as 2025, 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.