Revenue Beat: Sharda Cropchem Limited Exceeded Revenue Forecasts By 17% And Analysts Are Updating Their Estimates

The investors in Sharda Cropchem Limited's (NSE:SHARDACROP) will be rubbing their hands together with glee today, after the share price leapt 23% to ₹710 in the week following its quarterly results. It was a mildly positive result, with revenues exceeding expectations at ₹7.8b, while statutory earnings per share (EPS) of ₹3.53 were in line with analyst forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sharda Cropchem

Taking into account the latest results, the most recent consensus for Sharda Cropchem from five analysts is for revenues of ₹37.5b in 2025. If met, it would imply an okay 7.0% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 21% to ₹29.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹36.6b and earnings per share (EPS) of ₹27.00 in 2025. 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.

It will come as no surprise to learn that the analysts have increased their price target for Sharda Cropchem 16% to ₹738on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Sharda Cropchem, with the most bullish analyst valuing it at ₹857 and the most bearish at ₹586 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Sharda Cropchem'shistorical trends, as the 15% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. 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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for Sharda Cropchem going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Sharda Cropchem that we have uncovered.

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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.