This Just In: Analysts Are Boosting Their NOCIL Limited (NSE:NOCIL) Outlook for This Year

NOCIL Limited (NSE:NOCIL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investor sentiment seems to be improving too, with the share price up 6.6% to ₹152 over the past 7 days. 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 NOCIL's two analysts is for revenues of ₹9.2b in 2021, which would reflect a notable 13% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 17% to ₹5.15. Before this latest update, the analysts had been forecasting revenues of ₹8.0b and earnings per share (EPS) of ₹4.60 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for NOCIL

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting NOCIL's growth to accelerate, with the forecast 13% growth ranking favourably alongside historical growth of 1.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% next year. So it's clear that despite the acceleration in growth, NOCIL is expected to grow meaningfully slower than the industry average.

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. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about NOCIL's future.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for 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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