Bajaj Consumer Care Limited (NSE:BAJAJCON) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹696

Bajaj Consumer Care Limited (NSE:BAJAJCON) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to ₹568 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of ₹3.4b and statutory earnings per share of ₹14.21. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Bajaj Consumer Care's four analysts is for revenues of ₹13.5b in 2027. This reflects a notable 9.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to ₹18.90. Before this earnings report, the analysts had been forecasting revenues of ₹13.6b and earnings per share (EPS) of ₹17.58 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Bajaj Consumer Care

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 27% to ₹696. 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. The most optimistic Bajaj Consumer Care analyst has a price target of ₹871 per share, while the most pessimistic values it at ₹511. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Bajaj Consumer Care's growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bajaj Consumer Care is expected to grow much faster than its 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 Bajaj Consumer Care 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. 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.

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 Bajaj Consumer Care analysts - going out to 2029, and you can see them free on our platform here.

We also provide an overview of the Bajaj Consumer Care Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.