Yahoo Finance What Do Analysts Think About The Future Of Jyothy Laboratories Limited’s (NSE:JYOTHYLAB)?
Looking at Jyothy Laboratories Limited’s (NSE:JYOTHYLAB) earnings update in March 2018, it seems that analyst expectations are fairly bearish, as a 11% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 24%. With trailing-twelve-month net income at current levels of ₹1.9b, we should see this rise to ₹2.1b in 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Jyothy Laboratories in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Jyothy Laboratories
What can we expect from Jyothy Laboratories in the longer term?
The 9 analysts covering JYOTHYLAB view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of JYOTHYLAB’s earnings growth over these next few years.
By 2021, JYOTHYLAB’s earnings should reach ₹2.9b, from current levels of ₹1.9b, resulting in an annual growth rate of 16%. EPS reaches ₹7.98 in the final year of forecast compared to the current ₹5.12 EPS today. Earnings growth appears to be a result of reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. Margins is currently sitting at 11%, which is expected to expand to 12% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Jyothy Laboratories, there are three essential aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Jyothy Laboratories worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Jyothy Laboratories is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Jyothy Laboratories? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
