As you might know, JSW Infrastructure Limited (NSE:JSWINFRA) recently reported its second-quarter numbers. Revenue of ₹15b surpassed estimates by 3.0%, although statutory earnings per share missed badly, coming in 21% below expectations at ₹1.35 per share. 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. 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 consensus forecast from JSW Infrastructure's 17 analysts is for revenues of ₹63.9b in 2027. This reflects a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 16% to ₹7.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹64.8b and earnings per share (EPS) of ₹7.29 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 JSW Infrastructure
There were no changes to revenue or earnings estimates or the price target of ₹372, suggesting that the company has met expectations in its recent result. 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. The most optimistic JSW Infrastructure analyst has a price target of ₹430 per share, while the most pessimistic values it at ₹280. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 21% growth on an annualised basis. That is in line with its 20% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.3% per year. So although JSW Infrastructure is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹372, 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. We have forecasts for JSW Infrastructure going out to 2029, and you can see them free on our platform here.
You can also see our analysis of JSW Infrastructure's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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