Analyst Forecasts Just Became More Bearish On Nilkamal Limited (NSE:NILKAMAL)

Market forces rained on the parade of Nilkamal Limited (NSE:NILKAMAL) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the latest downgrade, the current consensus, from the twin analysts covering Nilkamal, is for revenues of ₹27b in 2026, which would reflect a painful 24% reduction in Nilkamal's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹37b in 2026. It looks like forecasts have become a fair bit less optimistic on Nilkamal, given the pretty serious reduction to revenue estimates.

View our latest analysis for Nilkamal

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 42% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 9.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Nilkamal is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Nilkamal this year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Nilkamal after today.

Unsatisfied? We have estimates for Nilkamal from its twin analysts out until 2028, and you can see them free on our platform here.

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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.