Analysts Just Published A Bright New Outlook For Solar Industries India Limited's (NSE:SOLARINDS)

Solar Industries India Limited (NSE:SOLARINDS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The stock price has risen 4.8% to ₹4,088 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from Solar Industries India's four analysts is for revenues of ₹60b in 2023, which would reflect a meaningful 8.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to expand 19% to ₹81.30. Before this latest update, the analysts had been forecasting revenues of ₹52b and earnings per share (EPS) of ₹67.80 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out the opportunities and risks within the IN Chemicals industry.

It will come as no surprise to learn that the analysts have increased their price target for Solar Industries India 17% to ₹3,702 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Solar Industries India analyst has a price target of ₹4,700 per share, while the most pessimistic values it at ₹2,865. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Solar Industries India'shistorical trends, as the 19% annualised revenue growth to the end of 2023 is roughly in line with the 19% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So it's pretty clear that Solar Industries India is forecast to grow substantially 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Solar Industries India.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Solar Industries India analysts - going out to 2025, and you can see them free on our platform here.

You can also see our analysis of Solar Industries India's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.