Earnings Miss: Bajaj Electricals Limited Missed EPS By 39% And Analysts Are Revising Their Forecasts
It's shaping up to be a tough period for Bajaj Electricals Limited (NSE:BAJAJELEC), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with ₹11b revenue coming in 3.5% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹2.25 missed the mark badly, arriving some 39% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Bajaj Electricals' seven analysts is for revenues of ₹46.8b in 2027. This would reflect a modest 3.6% increase on its revenue over the past 12 months. Earnings are expected to improve, with Bajaj Electricals forecast to report a statutory profit of ₹11.20 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹48.1b and earnings per share (EPS) of ₹12.47 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
See our latest analysis for Bajaj Electricals
It'll come as no surprise then, to learn that the analysts have cut their price target 8.5% to ₹357. 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 ₹467 per share, while the most pessimistic values it at ₹280. 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.
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 7.3% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 2.4% 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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. 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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