New Forecasts: Here's What Analysts Think The Future Holds For Jamna Auto Industries Limited (NSE:JAMNAAUTO)

Shareholders in Jamna Auto Industries Limited (NSE:JAMNAAUTO) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from Jamna Auto Industries' five analysts is for revenues of ₹21b in 2023, which would reflect a huge 22% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 34% to ₹4.73. Prior to this update, the analysts had been forecasting revenues of ₹19b and earnings per share (EPS) of ₹4.22 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Jamna Auto Industries

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.5% to ₹130 per share. 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. Currently, the most bullish analyst values Jamna Auto Industries at ₹149 per share, while the most bearish prices it at ₹110. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Jamna Auto Industries' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 22% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 5.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 14% per year. So it looks like Jamna Auto Industries is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Jamna Auto Industries could be worth investigating further.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential concern with Jamna Auto Industries, including concerns around earnings quality. You can learn more, and discover the 1 other concern we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.