Saatvik Green Energy Limited (NSE:SAATVIKGL) Analysts Are Reducing Their Forecasts For This Year
Market forces rained on the parade of Saatvik Green Energy Limited (NSE:SAATVIKGL) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the downgrade, the latest consensus from Saatvik Green Energy's twin analysts is for revenues of ₹56b in 2027, which would reflect a major 34% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 14% to ₹22.05. Prior to this update, the analysts had been forecasting revenues of ₹63b and earnings per share (EPS) of ₹29.00 in 2027. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.
View our latest analysis for Saatvik Green Energy
The consensus price target fell 6.2% to ₹509, with the weaker earnings outlook clearly leading analyst valuation estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 48% growth on an annualised basis. That is in line with its 47% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 20% per year. So it's pretty clear that Saatvik Green Energy is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Saatvik Green Energy's financials, such as its declining profit margins. Learn more, and discover the 1 other warning sign we've identified, for free on our platform here.
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