Jindal Stainless Limited (NSE:JSL) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹637

Last week, you might have seen that Jindal Stainless Limited (NSE:JSL) released its third-quarter result to the market. The early response was not positive, with shares down 2.5% to ₹575 in the past week. Jindal Stainless reported in line with analyst predictions, delivering revenues of ₹91b and statutory earnings per share of ₹8.41, suggesting the business is executing well and in line with its plan. 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 Jindal Stainless after the latest results.

See our latest analysis for Jindal Stainless

Taking into account the latest results, the most recent consensus for Jindal Stainless from nine analysts is for revenues of ₹478.8b in 2025. If met, it would imply a major 23% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 30% to ₹46.97. In the lead-up to this report, the analysts had been modelling revenues of ₹479.6b and earnings per share (EPS) of ₹47.96 in 2025. 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.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.5% to ₹637, suggesting the revised estimates are not indicative of a weaker long-term future for the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Jindal Stainless analyst has a price target of ₹735 per share, while the most pessimistic values it at ₹578. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Jindal Stainless' revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 29% 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) 8.4% per year. Even after the forecast slowdown in growth, it seems obvious that Jindal Stainless is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jindal Stainless. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 Jindal Stainless going out to 2026, and you can see them free on our platform here..

Even so, be aware that Jindal Stainless is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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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.