Analysts Are Betting On Gujarat State Petronet Limited (NSE:GSPL) With A Big Upgrade This Week

Celebrations may be in order for Gujarat State Petronet Limited (NSE:GSPL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Gujarat State Petronet's six analysts is for revenues of ₹182b in 2022, which would reflect a substantial 25% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹163b in 2022. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

View our latest analysis for Gujarat State Petronet

We'd point out that there was no major changes to their price target of ₹396, suggesting the latest estimates were not enough to shift their view on the value of the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Gujarat State Petronet, with the most bullish analyst valuing it at ₹498 and the most bearish at ₹260 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Gujarat State Petronet's revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2022 being well below the historical 37% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.2% per year. Even after the forecast slowdown in growth, it seems obvious that Gujarat State Petronet is also expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Gujarat State Petronet this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Gujarat State Petronet.

Thirsting for more data? We have analyst estimates for Gujarat State Petronet going out to 2024, and you can see them free on our platform here.

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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.