Earnings Report: Tatva Chintan Pharma Chem Limited Missed Revenue Estimates By 33%

Tatva Chintan Pharma Chem Limited (NSE:TATVA) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to ₹1,000 in the week after its latest quarterly results. Revenues were ₹1.1b, 33% shy of what the analysts were expecting, although statutory earnings of ₹13.26 per share were roughly in line with what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Tatva Chintan Pharma Chem

After the latest results, the two analysts covering Tatva Chintan Pharma Chem are now predicting revenues of ₹4.99b in 2025. If met, this would reflect a sizeable 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 102% to ₹22.50. In the lead-up to this report, the analysts had been modelling revenues of ₹5.22b and earnings per share (EPS) of ₹29.63 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 10% to ₹1,417, with the weaker earnings outlook clearly leading valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Tatva Chintan Pharma Chem's growth to accelerate, with the forecast 42% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.7% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tatva Chintan Pharma Chem to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Tatva Chintan Pharma Chem's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Tatva Chintan Pharma Chem's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Tatva Chintan Pharma Chem going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Tatva Chintan Pharma Chem that you need to take into consideration.

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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.

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