Earnings Miss: JK Tyre & Industries Limited Missed EPS By 14% And Analysts Are Revising Their Forecasts

Investors in JK Tyre & Industries Limited (NSE:JKTYRE) had a good week, as its shares rose 5.0% to close at ₹417 following the release of its yearly results. It was not a great result overall. While revenues of ₹150b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 14% to hit ₹29.74 per share. 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.

See our latest analysis for JK Tyre & Industries

Taking into account the latest results, the consensus forecast from JK Tyre & Industries' four analysts is for revenues of ₹162.0b in 2025. This reflects a notable 8.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 28% to ₹38.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹167.6b and earnings per share (EPS) of ₹37.14 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

The consensus has made no major changes to the price target of ₹485, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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. There are some variant perceptions on JK Tyre & Industries, with the most bullish analyst valuing it at ₹699 and the most bearish at ₹260 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that JK Tyre & Industries' revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that JK Tyre & Industries is also expected to grow slower than other industry participants.

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 JK Tyre & Industries following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, long term profitability is more important for the value creation process. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 JK Tyre & Industries going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for JK Tyre & Industries 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.