Tatva Chintan Pharma Chem Limited (NSE:TATVA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After this upgrade, Tatva Chintan Pharma Chem's three analysts are now forecasting revenues of ₹7.1b in 2027. This would be a decent 9.7% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 23% to ₹33.10. Previously, the analysts had been modelling revenues of ₹6.4b and earnings per share (EPS) of ₹30.50 in 2027. Sentiment certainly seems to have improved in recent times, with a nice increase in revenue and a modest lift to earnings per share estimates.
See our latest analysis for Tatva Chintan Pharma Chem
It will come as no surprise to learn that the analysts have increased their price target for Tatva Chintan Pharma Chem 7.5% to ₹1,550 on the back of these upgrades.
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. The analysts are definitely expecting Tatva Chintan Pharma Chem's growth to accelerate, with the forecast 20% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tatva Chintan Pharma Chem to grow faster than the wider industry.
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Tatva Chintan Pharma Chem.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Tatva Chintan Pharma Chem analysts - going out to 2029, and you can see them free on our platform here.
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