J. B. Chemicals & Pharmaceuticals Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's shaping up to be a tough period for J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. J. B. Chemicals & Pharmaceuticals missed analyst forecasts, with revenues of ₹8.4b and statutory earnings per share (EPS) of ₹8.46, falling short by 2.1% and 9.9% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on J. B. Chemicals & Pharmaceuticals after the latest 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 ₹40.4b in 2025. This would be a decent 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 35% to ₹44.87. Before this earnings report, the analysts had been forecasting revenues of ₹40.7b and earnings per share (EPS) of ₹45.75 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.9% to ₹1,867. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic J. B. Chemicals & Pharmaceuticals analyst has a price target of ₹2,205 per share, while the most pessimistic values it at ₹1,474. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the J. B. Chemicals & Pharmaceuticals' past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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 in mind, we wouldn't be too quick to come to a conclusion on J. B. Chemicals & Pharmaceuticals. Long-term earnings power is much more important than next year's profits. We have forecasts for J. B. Chemicals & Pharmaceuticals going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for J. B. Chemicals & Pharmaceuticals that we have uncovered.

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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.