Newsflash: Solara Active Pharma Sciences Limited (NSE:SOLARA) Analysts Have Been Trimming Their Revenue Forecasts

One thing we could say about the analysts on Solara Active Pharma Sciences Limited (NSE:SOLARA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the current consensus from Solara Active Pharma Sciences' three analysts is for revenues of ₹21b in 2023 which - if met - would reflect a huge 54% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹24b in 2023. It looks like forecasts have become a fair bit less optimistic on Solara Active Pharma Sciences, given the substantial drop in revenue estimates.

View our latest analysis for Solara Active Pharma Sciences

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. The analysts are definitely expecting Solara Active Pharma Sciences' growth to accelerate, with the forecast 42% annualised growth to the end of 2023 ranking favourably alongside historical growth of 22% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Solara Active Pharma Sciences to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Solara Active Pharma Sciences next year. The analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Solara Active Pharma Sciences after today.

Hungry for more information? At least one of Solara Active Pharma Sciences' three analysts has provided estimates out to 2024, which can be seen for 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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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.