SJVN Limited Just Beat Revenue By 11%: Here's What Analysts Think Will Happen Next
Investors in SJVN Limited (NSE:SJVN) had a good week, as its shares rose 9.0% to close at ₹53.39 following the release of its quarterly results. SJVN beat revenue forecasts by a solid 11% to hit ₹14b. Statutory earnings per share came in at ₹1.63, in line with expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from SJVN's dual analysts is for revenues of ₹64.0b in 2027. This reflects a satisfactory 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 39% to ₹3.50. In the lead-up to this report, the analysts had been modelling revenues of ₹60.2b and earnings per share (EPS) of ₹3.27 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
View our latest analysis for SJVN
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹66.50, suggesting that the forecast performance does not have a long term impact on the company's valuation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that SJVN's revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2027 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. Factoring in the forecast slowdown in growth, it seems obvious that SJVN is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SJVN's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at ₹66.50, 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. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
Even so, be aware that SJVN is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...
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