Earnings Update: Here's Why Analysts Just Lifted Their Bajaj Consumer Care Limited (NSE:BAJAJCON) Price Target To ₹254

Last week saw the newest quarterly earnings release from Bajaj Consumer Care Limited (NSE:BAJAJCON), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹2.7b and statutory earnings per share of ₹9.47 both in line with analyst estimates, showing that Bajaj Consumer Care is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Bajaj Consumer Care

Taking into account the latest results, the current consensus from Bajaj Consumer Care's eight analysts is for revenues of ₹10.4b in 2024. This would reflect a reasonable 5.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 15% to ₹12.26. In the lead-up to this report, the analysts had been modelling revenues of ₹10.6b and earnings per share (EPS) of ₹13.40 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 24% to ₹254, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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. Currently, the most bullish analyst values Bajaj Consumer Care at ₹300 per share, while the most bearish prices it at ₹185. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bajaj Consumer Care shareholders.

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. The analysts are definitely expecting Bajaj Consumer Care's growth to accelerate, with the forecast 7.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.8% per annum over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 8.6% 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Bajaj Consumer Care that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.