Results: Sharda Cropchem Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Sharda Cropchem Limited (NSE:SHARDACROP) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 10% higher than the analysts had forecast, at ₹44b, while EPS of ₹33.74 beat analyst models by 12%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Sharda Cropchem's five analysts is for revenues of ₹49.4b in 2026. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 23% to ₹41.64. Before this earnings report, the analysts had been forecasting revenues of ₹45.5b and earnings per share (EPS) of ₹40.42 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for Sharda Cropchem

Despite these upgrades,the analysts have not made any major changes to their price target of ₹791, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sharda Cropchem analyst has a price target of ₹870 per share, while the most pessimistic values it at ₹684. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 Sharda Cropchem'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although Sharda Cropchem is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sharda Cropchem's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Sharda Cropchem will grow in line with the overall industry. The consensus price target held steady at ₹791, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sharda Cropchem. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Sharda Cropchem analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Sharda Cropchem that you should be aware of.

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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.