Jamna Auto Industries Limited Recorded A 7.0% Miss On Revenue: Analysts Are Revisiting Their Models

Last week, you might have seen that Jamna Auto Industries Limited (NSE:JAMNAAUTO) released its quarterly result to the market. The early response was not positive, with shares down 5.7% to ₹104 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹5.1b, statutory earnings were in line with expectations, at ₹5.14 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Jamna Auto Industries

Following last week's earnings report, Jamna Auto Industries' dual analysts are forecasting 2025 revenues to be ₹23.5b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 2.2% to ₹4.80 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹24.8b and earnings per share (EPS) of ₹5.66 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

What's most unexpected is that the consensus price target rose 13% to ₹156, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

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. It's pretty clear that there is an expectation that Jamna Auto Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jamna Auto Industries.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Jamna Auto Industries (1 can't be ignored!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.