The Sharda Cropchem Limited (NSE:SHARDACROP) First-Quarter Results Are Out And Analysts Have Published New Forecasts
Shareholders might have noticed that Sharda Cropchem Limited (NSE:SHARDACROP) filed its first-quarter result this time last week. The early response was not positive, with shares down 6.1% to ₹820 in the past week. Results overall were respectable, with statutory earnings of ₹75.47 per share roughly in line with what the analysts had forecast. Revenues of ₹11b came in 2.9% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Sharda Cropchem's six analysts is for revenues of ₹60.0b in 2027. This reflects a decent 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.0% to ₹73.53. In the lead-up to this report, the analysts had been modelling revenues of ₹59.9b and earnings per share (EPS) of ₹72.33 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Sharda Cropchem
The analysts reconfirmed their price target of ₹1,204, showing that the business is executing well and in line with expectations. 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 Sharda Cropchem analyst has a price target of ₹1,350 per share, while the most pessimistic values it at ₹1,061. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Sharda Cropchem's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.7% 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 Sharda Cropchem to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Sharda Cropchem analysts - going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Sharda Cropchem you should be aware of.
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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.