Bajaj Electricals Limited (NSE:BAJAJELEC) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Bajaj Electricals Limited (NSE:BAJAJELEC) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 4.3% below expectations, at ₹11b. Statutory earnings per share were relatively better off, with a per-share profit of ₹11.37 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Bajaj Electricals

Taking into account the latest results, the most recent consensus for Bajaj Electricals from eight analysts is for revenues of ₹49.5b in 2025. If met, it would imply an okay 5.4% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 45% to ₹13.55. Before this earnings report, the analysts had been forecasting revenues of ₹50.8b and earnings per share (EPS) of ₹19.74 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

The analysts made no major changes to their price target of ₹1,040, suggesting the downgrades are not expected to have a long-term impact on Bajaj Electricals' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Bajaj Electricals, with the most bullish analyst valuing it at ₹1,201 and the most bearish at ₹665 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. One thing stands out from these estimates, which is that Bajaj Electricals is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually for the foreseeable future. So although Bajaj Electricals' revenue growth is expected to improve, it is still expected to grow slower than the 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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹1,040, with the latest estimates not enough to have an impact on their price targets.

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. We have estimates - from multiple Bajaj Electricals analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 4 warning signs for Bajaj Electricals that we have uncovered.

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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.