Investors in Deepak Nitrite Limited (NSE:DEEPAKNTR) had a good week, as its shares rose 8.1% to close at ₹1,797 following the release of its first-quarter results. Results overall were respectable, with statutory earnings of ₹40.36 per share roughly in line with what the analysts had forecast. Revenues of ₹26b came in 6.8% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Deepak Nitrite's 17 analysts is for revenues of ₹97.1b in 2027. This reflects a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 18% to ₹67.77. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹93.3b and earnings per share (EPS) of ₹57.35 in 2027. So it seems there's been a definite increase in optimism about Deepak Nitrite's future following the latest results, with a solid gain to the earnings per share forecasts in particular.
See our latest analysis for Deepak Nitrite
Despite these upgrades,the analysts have not made any major changes to their price target of ₹1,871, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Deepak Nitrite at ₹2,101 per share, while the most bearish prices it at ₹1,451. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Deepak Nitrite shareholders.
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 Deepak Nitrite's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.7% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Deepak Nitrite is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Deepak Nitrite following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,871, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Deepak Nitrite going out to 2029, and you can see them free on our platform here..
Even so, be aware that Deepak Nitrite is showing 1 warning sign in our investment analysis , you should know about...
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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.