Analysts Have Made A Financial Statement On Coromandel International Limited's (NSE:COROMANDEL) First-Quarter Report

Shareholders might have noticed that Coromandel International Limited (NSE:COROMANDEL) filed its quarterly result this time last week. The early response was not positive, with shares down 2.6% to ₹1,981 in the past week. Results were roughly in line with estimates, with revenues of ₹82b and statutory earnings per share of ₹66.31. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Coromandel International's eight analysts are forecasting 2027 revenues to be ₹332.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 18% to ₹73.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹334.9b and earnings per share (EPS) of ₹79.99 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Coromandel International

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹2,323, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Coromandel International analyst has a price target of ₹2,951 per share, while the most pessimistic values it at ₹2,067. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's pretty clear that there is an expectation that Coromandel International's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Coromandel International.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Coromandel International's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹2,323, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Coromandel International going out to 2029, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Coromandel International that you need to take into consideration.

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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.