What You Need To Know About The Sunteck Realty Limited (NSE:SUNTECK) Analyst Downgrade Today

The analysts covering Sunteck Realty Limited (NSE:SUNTECK) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from Sunteck Realty's six analysts is for revenues of ₹8.5b in 2023 which - if met - would reflect a huge 68% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing ₹9.6b of revenue in 2023. The consensus view seems to have become more pessimistic on Sunteck Realty, noting the substantial drop in revenue estimates in this update.

See our latest analysis for Sunteck Realty

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Sunteck Realty is forecast to grow faster in the future than it has in the past, with revenues expected to display 181% annualised growth until the end of 2023. If achieved, this would be a much better result than the 11% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. So it looks like Sunteck Realty is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Sunteck Realty this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Sunteck Realty going forwards.

Want more information? At least one of Sunteck Realty's six analysts has provided estimates out to 2025, 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.