Analysts Have Made A Financial Statement On Bajaj Electricals Limited's (NSE:BAJAJELEC) Second-Quarter Report

Bajaj Electricals Limited (NSE:BAJAJELEC) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to ₹504 in the week after its latest second-quarter results. It was an okay report, and revenues came in at ₹11b, approximately in line with analyst estimates leading up to the results announcement. 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.

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Taking into account the latest results, the consensus forecast from Bajaj Electricals' nine analysts is for revenues of ₹50.0b in 2026. This reflects an okay 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 16% to ₹10.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹49.9b and earnings per share (EPS) of ₹12.70 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Check out our latest analysis for Bajaj Electricals

The consensus price target held steady at ₹672, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Bajaj Electricals analyst has a price target of ₹816 per share, while the most pessimistic values it at ₹433. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Bajaj Electricals' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Bajaj Electricals is expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bajaj Electricals. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹672, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bajaj Electricals going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Bajaj Electricals (1 doesn't sit too well with us!) that you should be aware of.

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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.