Gujarat State Fertilizers & Chemicals Limited Just Recorded A 48% Revenue Beat: Here's What Analysts Think
Gujarat State Fertilizers & Chemicals Limited (NSE:GSFC) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Revenue of ₹36b beat expectations by an impressive 48%, while statutory earnings per share (EPS) were ₹16.88, in line with estimates. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
Following last week's earnings report, Gujarat State Fertilizers & Chemicals' lone analyst are forecasting 2027 revenues to be ₹125.5b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 8.0% to ₹16.00 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹106.0b and earnings per share (EPS) of ₹16.70 in 2027. Although revenue sentiment looks to be improving, the analyst has made a small dip in per-share earnings estimates, perhaps acknowledging the investment required to grow the business.
View our latest analysis for Gujarat State Fertilizers & Chemicals
There's been no major changes to the price target of ₹185, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.
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 Fertilizers & Chemicals' revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2027 being well below the historical 3.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Gujarat State Fertilizers & Chemicals.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gujarat State Fertilizers & Chemicals. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse 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.
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. We have analyst estimates for Gujarat State Fertilizers & Chemicals going out as far as 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Gujarat State Fertilizers & Chemicals that 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.