Jain Resource Recycling Limited Just Beat Revenue By 6.8%: Here's What Analysts Think Will Happen Next

It's been a good week for Jain Resource Recycling Limited (NSE:JAINREC) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.1% to ₹287. Results overall were respectable, with statutory earnings of ₹10.25 per share roughly in line with what the analysts had forecast. Revenues of ₹33b came in 6.8% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Jain Resource Recycling's four analysts is for revenues of ₹126.3b in 2027. This would reflect a credible 5.7% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 27% to ₹12.11. Before this earnings report, the analysts had been forecasting revenues of ₹126.3b and earnings per share (EPS) of ₹12.11 in 2027. 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.

Check out our latest analysis for Jain Resource Recycling

There were no changes to revenue or earnings estimates or the price target of ₹375, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Jain Resource Recycling at ₹395 per share, while the most bearish prices it at ₹350. This is a very narrow spread of estimates, implying either that Jain Resource Recycling is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Jain Resource Recycling's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2027 being well below the historical 51% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. So it's pretty clear that, while Jain Resource Recycling's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Jain Resource Recycling. Long-term earnings power is much more important than next year's profits. We have forecasts for Jain Resource Recycling going out to 2029, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Jain Resource Recycling .

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