Analysts Have Made A Financial Statement On Sumitomo Chemical India Limited's (NSE:SUMICHEM) Full-Year Report

Last week, you might have seen that Sumitomo Chemical India Limited (NSE:SUMICHEM) released its yearly result to the market. The early response was not positive, with shares down 5.4% to ₹503 in the past week. It was a credible result overall, with revenues of ₹33b and statutory earnings per share of ₹10.13 both in line with analyst estimates, showing that Sumitomo Chemical India is executing 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sumitomo Chemical India after the latest results.

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Taking into account the latest results, the consensus forecast from Sumitomo Chemical India's six analysts is for revenues of ₹36.0b in 2026. This reflects a notable 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 19% to ₹12.10. Before this earnings report, the analysts had been forecasting revenues of ₹38.3b and earnings per share (EPS) of ₹12.37 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Sumitomo Chemical India

Despite the cuts to forecast earnings, there was no real change to the ₹579 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Sumitomo Chemical India at ₹659 per share, while the most bearish prices it at ₹480. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sumitomo Chemical India's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Sumitomo Chemical India is expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sumitomo Chemical India. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Sumitomo Chemical India analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Sumitomo Chemical 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.