Chambal Fertilisers and Chemicals Limited Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next
Investors in Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) had a good week, as its shares rose 3.5% to close at ₹455 following the release of its quarterly results. Revenues missed the mark, coming in 18% below forecasts, at ₹50b. Statutory profits were better overall though, with per-share profits of ₹13.07 being a notable 16% above what the analysts were modelling. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Chambal Fertilisers and Chemicals after the latest results.
Taking into account the latest results, the current consensus from Chambal Fertilisers and Chemicals' two analysts is for revenues of ₹231.4b in 2027. This would reflect a decent 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.2% to ₹49.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹233.6b and earnings per share (EPS) of ₹49.50 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Chambal Fertilisers and Chemicals
With no major changes to earnings forecasts, the consensus price target fell 6.6% to ₹575, suggesting that the analysts might have previously been hoping for an earnings upgrade.
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. It's clear from the latest estimates that Chambal Fertilisers and Chemicals' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 1.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chambal Fertilisers and Chemicals is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Chambal Fertilisers and Chemicals' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Chambal Fertilisers and Chemicals (1 is concerning) 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.