Investors in Sharda Cropchem Limited (NSE:SHARDACROP) had a good week, as its shares rose 3.6% to close at ₹672 following the release of its quarterly results. It was a workmanlike result, with revenues of ₹11b coming in 6.6% ahead of expectations, and statutory earnings per share of ₹75.47, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Sharda Cropchem's five analysts is for revenues of ₹59.1b in 2027. This would reflect an okay 7.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 4.1% to ₹74.24. In the lead-up to this report, the analysts had been modelling revenues of ₹60.0b and earnings per share (EPS) of ₹74.24 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.
Check out our latest analysis for Sharda Cropchem
The consensus price target fell 13% to ₹1,095, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Sharda Cropchem, with the most bullish analyst valuing it at ₹1,350 and the most bearish at ₹812 per share. 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 Sharda Cropchem shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sharda Cropchem's past performance and to peers in the same industry. It's clear from the latest estimates that Sharda Cropchem's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.7% 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 Sharda Cropchem 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Sharda Cropchem going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Sharda Cropchem you should be aware of, and 1 of them makes us a bit uncomfortable.
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