Bajaj Consumer Care Limited Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next

It's been a sad week for Bajaj Consumer Care Limited (NSE:BAJAJCON), who've watched their investment drop 10% to ₹161 in the week since the company reported its quarterly result. Statutory earnings per share fell badly short of expectations, coming in at ₹1.82, some 24% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹2.3b. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Bajaj Consumer Care

Taking into account the latest results, the most recent consensus for Bajaj Consumer Care from six analysts is for revenues of ₹10.6b in 2026. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 24% to ₹11.30. In the lead-up to this report, the analysts had been modelling revenues of ₹11.2b and earnings per share (EPS) of ₹14.95 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 9.2% to ₹243. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Bajaj Consumer Care analyst has a price target of ₹325 per share, while the most pessimistic values it at ₹183. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Bajaj Consumer Care's rate of growth is expected to accelerate meaningfully, with the forecast 8.7% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.9% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.4% per year. Bajaj Consumer Care is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Bajaj Consumer Care. Long-term earnings power is much more important than next year's profits. We have forecasts for Bajaj Consumer Care going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Bajaj Consumer Care's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.