Broker Revenue Forecasts For Bajaj Finserv Ltd. (NSE:BAJAJFINSV) Are Surging Higher

Celebrations may be in order for Bajaj Finserv Ltd. (NSE:BAJAJFINSV) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for Bajaj Finserv from its six analysts is for revenues of ₹777b in 2023 which, if met, would be a sizeable 22% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 78% to ₹467. Prior to this update, the analysts had been forecasting revenues of ₹692b and earnings per share (EPS) of ₹463 in 2023. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Bajaj Finserv

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Bajaj Finserv's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2023 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. So it's pretty clear that, while Bajaj Finserv's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Bajaj Finserv.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bajaj Finserv analysts - going out to 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.