Bajaj Consumer Care Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's been a mediocre week for Bajaj Consumer Care Limited (NSE:BAJAJCON) shareholders, with the stock dropping 13% to ₹204 in the week since its latest second-quarter results. Revenues were in line with forecasts, at ₹2.3b, although statutory earnings per share came in 13% below what the analysts expected, at ₹2.27 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bajaj Consumer Care after the latest results.

Check out our latest analysis for Bajaj Consumer Care

Taking into account the latest results, Bajaj Consumer Care's five analysts currently expect revenues in 2025 to be ₹9.74b, approximately in line with the last 12 months. Per-share earnings are expected to ascend 10% to ₹10.87. In the lead-up to this report, the analysts had been modelling revenues of ₹10.7b and earnings per share (EPS) of ₹12.65 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

The analysts made no major changes to their price target of ₹279, suggesting the downgrades are not expected to have a long-term impact on Bajaj Consumer Care's valuation. 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. There are some variant perceptions on Bajaj Consumer Care, with the most bullish analyst valuing it at ₹324 and the most bearish at ₹220 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Bajaj Consumer Care's rate of growth is expected to accelerate meaningfully, with the forecast 3.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.6% 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 8.2% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Bajaj Consumer Care is expected to grow slower than the wider industry.

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. 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 ₹279, 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. We have estimates - from multiple Bajaj Consumer Care analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Bajaj Consumer Care .

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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.