Need To Know: Analysts Just Made A Substantial Cut To Their Jupiter Wagons Limited (NSE:JWL) Estimates

Today is shaping up negative for Jupiter Wagons Limited (NSE:JWL) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

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After this downgrade, Jupiter Wagons' three analysts are now forecasting revenues of ₹37b in 2026. This would be a notable 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to expand 16% to ₹7.65. Previously, the analysts had been modelling revenues of ₹43b and earnings per share (EPS) of ₹9.80 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Jupiter Wagons

The consensus price target fell 8.8% to ₹364, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Jupiter Wagons' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 25% growth on an annualised basis. This is compared to a historical growth rate of 41% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. Even after the forecast slowdown in growth, it seems obvious that Jupiter Wagons is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Jupiter Wagons' business, like concerns around earnings quality. Learn more, and discover the 1 other flag we've identified, for free on our platform here.

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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.