J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Last week saw the newest quarterly earnings release from J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹9.6b and statutory earnings per share of ₹10.24 both in line with analyst estimates, showing that J. B. Chemicals & Pharmaceuticals is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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

After the latest results, the 14 analysts covering J. B. Chemicals & Pharmaceuticals are now predicting revenues of ₹44.8b in 2026. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 29% to ₹53.06. Before this earnings report, the analysts had been forecasting revenues of ₹45.6b and earnings per share (EPS) of ₹54.82 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹2,165, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values J. B. Chemicals & Pharmaceuticals at ₹2,443 per share, while the most bearish prices it at ₹1,684. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that J. B. Chemicals & Pharmaceuticals' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. So it's pretty clear that, while J. B. Chemicals & Pharmaceuticals' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider 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.

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 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - J. B. Chemicals & Pharmaceuticals has 2 warning signs we think 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.