Sudarshan Chemical Industries Limited Just Beat Revenue Estimates By 13%

The third-quarter results for Sudarshan Chemical Industries Limited (NSE:SUDARSCHEM) were released last week, making it a good time to revisit its performance. Sudarshan Chemical Industries beat revenue forecasts by a solid 13% to hit ₹5.1b. Statutory earnings per share came in at ₹20.90, in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Sudarshan Chemical Industries

Taking into account the latest results, the current consensus from Sudarshan Chemical Industries' ten analysts is for revenues of ₹20.2b in 2022, which would reflect a solid 16% increase on its sales over the past 12 months. Statutory earnings per share are predicted to shoot up 31% to ₹21.77. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹19.9b and earnings per share (EPS) of ₹21.72 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹564, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Sudarshan Chemical Industries at ₹638 per share, while the most bearish prices it at ₹500. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sudarshan Chemical Industries' past performance and to peers in the same industry. It's clear from the latest estimates that Sudarshan Chemical Industries' rate of growth is expected to accelerate meaningfully, with the forecast 16% revenue growth noticeably faster than its historical growth of 5.6%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sudarshan Chemical Industries is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sudarshan Chemical Industries analysts - going out to 2023, and you can see them free on our platform here.

You still need to take note of risks, for example - Sudarshan Chemical Industries has 4 warning signs we think you should be aware of.

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