Bajaj Consumer Care Limited (NSE:BAJAJCON) defied analyst predictions to release its yearly results, which were ahead of market expectations. The company beat expectations with revenues of ₹12b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were ₹14.21, 9.9% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Bajaj Consumer Care from three analysts is for revenues of ₹13.6b in 2027. If met, it would imply a notable 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 12% to ₹16.30. In the lead-up to this report, the analysts had been modelling revenues of ₹12.7b and earnings per share (EPS) of ₹15.35 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
See our latest analysis for Bajaj Consumer Care
It will come as no surprise to learn that the analysts have increased their price target for Bajaj Consumer Care 19% to ₹481on the back of these upgrades. 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. The most optimistic Bajaj Consumer Care analyst has a price target of ₹600 per share, while the most pessimistic values it at ₹287. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bajaj Consumer Care's past performance and to peers in the same industry. It's clear from the latest estimates that Bajaj Consumer Care's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.2% p.a. 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 7.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bajaj Consumer Care 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 Bajaj Consumer Care 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bajaj Consumer Care going out to 2029, and you can see them free on our platform here..
Even so, be aware that Bajaj Consumer Care 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.