GAIL (India) Limited (NSE:GAIL) Analysts Just Trimmed Their Revenue Forecasts By 10%

Today is shaping up negative for GAIL (India) Limited (NSE:GAIL) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the current consensus, from the four analysts covering GAIL (India), is for revenues of ₹1.0t in 2024, which would reflect a stressful 25% reduction in GAIL (India)'s sales over the past 12 months. Before the latest update, the analysts were foreseeing ₹1.2t of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on GAIL (India), given the substantial drop in revenue estimates.

View our latest analysis for GAIL (India)

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 21% by the end of 2024. This indicates a significant reduction from annual growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.0% annually for the foreseeable future. It's pretty clear that GAIL (India)'s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of GAIL (India) going forwards.

Of course, this isn't the full story. We have estimates for GAIL (India) from its four analysts out until 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.