U.S. Markets closed

J. Kumar Infraprojects Limited (NSE:JKIL): What's The Analyst Consensus Outlook?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

The latest earnings release J. Kumar Infraprojects Limited's (NSE:JKIL) announced in March 2019 indicated that the company gained from a robust tailwind, leading to a double-digit earnings growth of 30%. Today I want to provide a brief commentary on how market analysts perceive J. Kumar Infraprojects's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

View our latest analysis for J. Kumar Infraprojects

Market analysts' consensus outlook for next year seems buoyant, with earnings increasing by a robust 23%. This growth seems to continue into the following year with rates arriving at double digit 44% compared to today’s earnings, and finally hitting ₹3.2b by 2022.

NSEI:JKIL Past and Future Earnings, June 17th 2019

While it is useful to understand the rate of growth each year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are moving every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of J. Kumar Infraprojects's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 18%. This means, we can presume J. Kumar Infraprojects will grow its earnings by 18% every year for the next couple of years.

Next Steps:

For J. Kumar Infraprojects, I've compiled three essential aspects you should further examine:

  1. 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.
  2. Valuation: What is JKIL 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 JKIL is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JKIL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.