Earnings Update: Here's Why Analysts Just Lifted Their Jyothy Labs Limited (NSE:JYOTHYLAB) Price Target To ₹573

Shareholders of Jyothy Labs Limited (NSE:JYOTHYLAB) will be pleased this week, given that the stock price is up 11% to ₹548 following its latest first-quarter results. The result was positive overall - although revenues of ₹7.4b were in line with what the analysts predicted, Jyothy Labs surprised by delivering a statutory profit of ₹2.77 per share, modestly greater than expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Jyothy Labs

Taking into account the latest results, the current consensus from Jyothy Labs' twelve analysts is for revenues of ₹30.5b in 2025. This would reflect a decent 8.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 12% to ₹11.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹30.5b and earnings per share (EPS) of ₹11.34 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 14% to ₹573. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. The most optimistic Jyothy Labs analyst has a price target of ₹654 per share, while the most pessimistic values it at ₹459. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We can infer from the latest estimates that forecasts expect a continuation of Jyothy Labs'historical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.6% per year. So it's pretty clear that Jyothy Labs is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Jyothy Labs going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Jyothy Labs you should be aware of.

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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.

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