J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

It's been a good week for J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) shareholders, because the company has just released its latest yearly results, and the shares gained 8.0% to ₹1,647. It looks like the results were a bit of a negative overall. While revenues of ₹40b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.3% to hit ₹41.56 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 2 warning signs about J. B. Chemicals & Pharmaceuticals. View them for free.

After the latest results, the 13 analysts covering J. B. Chemicals & Pharmaceuticals are now predicting revenues of ₹43.7b in 2026. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 21% to ₹51.43. In the lead-up to this report, the analysts had been modelling revenues of ₹44.6b and earnings per share (EPS) of ₹52.88 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

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

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹2,049, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on J. B. Chemicals & Pharmaceuticals, with the most bullish analyst valuing it at ₹2,458 and the most bearish at ₹1,595 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that J. B. Chemicals & Pharmaceuticals' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this to the 170 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it looks like J. B. Chemicals & Pharmaceuticals is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for J. B. Chemicals & Pharmaceuticals. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. We have estimates - from multiple J. B. Chemicals & Pharmaceuticals analysts - going out to 2028, 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.