Jubilant Ingrevia Limited Just Missed Revenue By 86%: Here's What Analysts Think Will Happen Next

The analyst might have been a bit too bullish on Jubilant Ingrevia Limited (NSE:JUBLINGREA), given that the company fell short of expectations when it released its annual results last week. Earnings missed expectations fairly severely, with revenues arriving 86% shy of expectations at just ₹6.8b. Per-share statutory earnings were ₹29.97, missing analyst predictions by 16%. The analyst 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Jubilant Ingrevia

Taking into account the latest results, the consensus forecast from Jubilant Ingrevia's one analyst is for revenues of ₹51.8b in 2023, which would reflect a substantial 658% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to leap 788% to ₹30.30. Before this earnings report, the analyst had been forecasting revenues of ₹44.6b and earnings per share (EPS) of ₹31.20 in 2023. While revenue forecasts have increased substantially, the analyst is a little more pessimistic on earnings, suggesting that the growth in revenue does not come without cost.

Curiously, the consensus price target rose 57% to ₹1,006. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jubilant Ingrevia. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst 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 Jubilant Ingrevia. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Jubilant Ingrevia going out as far as 2024, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Jubilant Ingrevia that 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.