JSW Steel Limited Just Beat EPS By 34%: Here's What Analysts Think Will Happen Next
As you might know, JSW Steel Limited (NSE:JSWSTEEL) recently reported its half-yearly numbers. Revenues were ₹1.0t, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹21.59, an impressive 34% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, JSW Steel's 35 analysts are now forecasting revenues of ₹2.10t in 2027. This would be a credible 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 39% to ₹71.50 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹2.04t and earnings per share (EPS) of ₹63.00 in 2027. So it seems there's been a definite increase in optimism about JSW Steel's future following the latest results, with a solid gain to the earnings per share forecasts in particular.
See our latest analysis for JSW Steel
Despite these upgrades,the analysts have not made any major changes to their price target of ₹1,400, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 JSW Steel analyst has a price target of ₹1,653 per share, while the most pessimistic values it at ₹1,137. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await JSW Steel shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting JSW Steel's growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that JSW Steel is expected to grow at about the same rate as the wider 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 JSW Steel following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that JSW Steel will 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.
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 JSW Steel going out to 2029, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for JSW Steel (1 is potentially serious!) that we have uncovered.
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