Results: JSW Energy Limited Beat Earnings Expectations And Analysts Now Have New Forecasts
As you might know, JSW Energy Limited (NSE:JSWENERGY) just kicked off its latest second-quarter results with some very strong numbers. The company beat forecasts, with revenue of ₹64b, some 9.1% above estimates, and statutory earnings per share (EPS) coming in at ₹5.62, 52% ahead of expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, JSW Energy's 22 analysts are now forecasting revenues of ₹228.6b in 2027. This would be a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.5% to ₹13.48. Before this earnings report, the analysts had been forecasting revenues of ₹226.8b and earnings per share (EPS) of ₹13.71 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 JSW Energy
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹605. 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 JSW Energy analyst has a price target of ₹721 per share, while the most pessimistic values it at ₹510. 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 clear from the latest estimates that JSW Energy's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 19% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect JSW Energy to grow faster than the wider 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. 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. The consensus price target held steady at ₹605, with the latest estimates not enough to have an impact on their price targets.
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 forecasts for JSW Energy going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for JSW Energy (of which 1 is potentially serious!) you should know about.
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