J. B. Chemicals & Pharmaceuticals Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were ₹10b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹11.16 were also better than expected, beating analyst predictions by 13%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for J. B. Chemicals & Pharmaceuticals

Following the latest results, J. B. Chemicals & Pharmaceuticals' twelve analysts are now forecasting revenues of ₹40.5b in 2025. This would be a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 22% to ₹46.21. Before this earnings report, the analysts had been forecasting revenues of ₹40.5b and earnings per share (EPS) of ₹44.83 in 2025. So the consensus seems to have become somewhat more optimistic on J. B. Chemicals & Pharmaceuticals' earnings potential following these results.

There's been no major changes to the consensus price target of ₹1,982, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 J. B. Chemicals & Pharmaceuticals analyst has a price target of ₹2,201 per share, while the most pessimistic values it at ₹1,632. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting J. B. Chemicals & Pharmaceuticals is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of J. B. Chemicals & Pharmaceuticals'historical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 17% 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 10% per year. So although J. B. Chemicals & Pharmaceuticals is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards J. B. Chemicals & Pharmaceuticals following these results. 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. The consensus price target held steady at ₹1,982, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple J. B. Chemicals & Pharmaceuticals analysts - 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 2 warning signs for J. B. Chemicals & Pharmaceuticals 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.