Galaxy Surfactants Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Galaxy Surfactants Limited (NSE:GALAXYSURF) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Galaxy Surfactants delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ₹18b-17% above indicated-and₹46.66-94% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Galaxy Surfactants' twelve analysts is for revenues of ₹62.6b in 2027. This would reflect a meaningful 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 11% to ₹111. In the lead-up to this report, the analysts had been modelling revenues of ₹56.8b and earnings per share (EPS) of ₹88.16 in 2027. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.
View our latest analysis for Galaxy Surfactants
It will come as no surprise to learn that the analysts have increased their price target for Galaxy Surfactants 6.4% to ₹2,439on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Galaxy Surfactants analyst has a price target of ₹2,927 per share, while the most pessimistic values it at ₹1,905. 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 Galaxy Surfactants shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Galaxy Surfactants' past performance and to peers in the same industry. The analysts are definitely expecting Galaxy Surfactants' growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.1% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Galaxy Surfactants is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Galaxy Surfactants' earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Galaxy Surfactants will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Galaxy Surfactants going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Galaxy Surfactants that you need to be mindful of.
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