It's been a mediocre week for Just Dial Limited (NSE:JUSTDIAL) shareholders, with the stock dropping 12% to ₹600 in the week since its latest second-quarter results. Revenues were ₹1.7b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹7.30, an impressive 29% ahead of estimates. 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.
Taking into account the latest results, the eleven analysts covering Just Dial provided consensus estimates of ₹7.85b revenue in 2021, which would reflect a small 5.3% decline on its sales over the past 12 months. Statutory earnings per share are forecast to decline 17% to ₹34.29 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹7.91b and earnings per share (EPS) of ₹33.92 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The consensus price target rose 23% to ₹654despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Just Dial's earnings by assigning a price premium. 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. Currently, the most bullish analyst values Just Dial at ₹860 per share, while the most bearish prices it at ₹370. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 5.3% revenue decline is better than the historical trend, which saw revenues shrink 12% annually over the past year
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Just Dial's revenues are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Just Dial going out to 2023, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Just Dial that you need to take into consideration.
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This article by Simply Wall St is general in nature. 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.
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