S.J.S. Enterprises Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, S.J.S. Enterprises Limited (NSE:SJS) last week released its latest first-quarter, and things did not turn out so great for shareholders. S.J.S. Enterprises missed earnings this time around, with ₹2.1b revenue coming in 5.6% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹10.74 also fell short of expectations by 14%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for S.J.S. Enterprises from three analysts is for revenues of ₹9.22b in 2026. If met, it would imply a decent 18% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 23% to ₹48.95. Before this earnings report, the analysts had been forecasting revenues of ₹9.20b and earnings per share (EPS) of ₹46.93 in 2026. So the consensus seems to have become somewhat more optimistic on S.J.S. Enterprises' earnings potential following these results.

Check out our latest analysis for S.J.S. Enterprises

There's been no major changes to the consensus price target of ₹1,334, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 S.J.S. Enterprises, with the most bullish analyst valuing it at ₹1,425 and the most bearish at ₹1,250 per share. This is a very narrow spread of estimates, implying either that S.J.S. Enterprises is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 25% growth on an annualised basis. That is in line with its 26% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.0% per year. So it's pretty clear that S.J.S. Enterprises is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around S.J.S. Enterprises' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on S.J.S. Enterprises. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple S.J.S. Enterprises analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of S.J.S. Enterprises' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.