Jindal Stainless Limited (NSE:JSL) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

As you might know, Jindal Stainless Limited (NSE:JSL) recently reported its quarterly numbers. It was a workmanlike result, with revenues of ₹98b coming in 3.7% ahead of expectations, and statutory earnings per share of ₹32.94, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Jindal Stainless

After the latest results, the nine analysts covering Jindal Stainless are now predicting revenues of ₹440.5b in 2025. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 34% to ₹40.02. Before this earnings report, the analysts had been forecasting revenues of ₹456.3b and earnings per share (EPS) of ₹42.38 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of ₹873, suggesting the downgrades are not expected to have a long-term impact on Jindal Stainless' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Jindal Stainless at ₹1,000 per share, while the most bearish prices it at ₹756. This is a very narrow spread of estimates, implying either that Jindal Stainless is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's clear from the latest estimates that Jindal Stainless' rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 28% 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 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Jindal Stainless is expected to grow much faster than its 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. They also downgraded Jindal Stainless' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Jindal Stainless going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Jindal Stainless , and understanding it should be part of your investment process.

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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.