News Flash: Analysts Just Made A Notable Upgrade To Their Jamna Auto Industries Limited (NSE:JAMNAAUTO) Forecasts

Jamna Auto Industries Limited (NSE:JAMNAAUTO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from Jamna Auto Industries' five analysts is for revenues of ₹13b in 2022 which - if met - would reflect a sizeable 55% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 154% to ₹2.32. Previously, the analysts had been modelling revenues of ₹12b and earnings per share (EPS) of ₹1.92 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Jamna Auto Industries

It will come as no surprise to learn that the analysts have increased their price target for Jamna Auto Industries 26% to ₹68.40 on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Jamna Auto Industries analyst has a price target of ₹90.00 per share, while the most pessimistic values it at ₹41.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Jamna Auto Industries' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 55%, well above its historical decline of 1.4% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 16% next 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 next 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.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Jamna Auto Industries analysts - going out to 2023, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. 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.
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