Downgrade: What You Need To Know About The Latest S Chand and Company Limited (NSE:SCHAND) Forecasts

One thing we could say about the covering analyst on S Chand and Company Limited (NSE:SCHAND) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Shares are up 5.6% to ₹117 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

Following the downgrade, the most recent consensus for S Chand from its single analyst is for revenues of ₹5.0b in 2022 which, if met, would be a solid 18% increase on its sales over the past 12 months. Before the latest update, the analyst was foreseeing ₹6.3b of revenue in 2022. The consensus view seems to have become more pessimistic on S Chand, noting the pretty serious reduction to revenue estimates in this update.

See our latest analysis for S Chand

Additionally, the consensus price target for S Chand increased 15% to ₹146, showing a clear increase in optimism from the analyst involved.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that S Chand's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 11% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 15% per year. So it looks like S Chand is expected to grow at about the same rate as the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for S Chand this year. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given the stark change in sentiment, we'd understand if investors became more cautious on S Chand after today.

Of course, this isn't the full story. We have forecasts for S Chand from one covering analyst, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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