Results: Bajaj Electricals Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders of Bajaj Electricals Limited (NSE:BAJAJELEC) will be pleased this week, given that the stock price is up 11% to ₹371 following its latest quarterly results. Revenues of ₹11b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹4.18 an impressive 161% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the nine analysts covering Bajaj Electricals are now predicting revenues of ₹48.5b in 2027. If met, this would reflect an okay 7.8% improvement in revenue compared to the last 12 months. Bajaj Electricals is also expected to turn profitable, with statutory earnings of ₹9.73 per share. Before this earnings report, the analysts had been forecasting revenues of ₹48.7b and earnings per share (EPS) of ₹10.03 in 2027. 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.

Check out our latest analysis for Bajaj Electricals

The consensus price target held steady at ₹408, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Bajaj Electricals analyst has a price target of ₹577 per share, while the most pessimistic values it at ₹307. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. For example, we noticed that Bajaj Electricals' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 2.0% a year 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 revenue grow 15% per year. Although Bajaj Electricals' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bajaj Electricals going out to 2029, and you can see them free on our platform here..

You still need to take note of risks, for example - Bajaj Electricals 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.