Results: ITD Cementation India Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

ITD Cementation India Limited (NSE:ITDCEM) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to ₹525 in the week after its latest quarterly results. Revenues ₹22b disappointed slightly, at4.1% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹5.07 coming in 11% above what was anticipated. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for ITD Cementation India

Taking into account the latest results, the consensus forecast from ITD Cementation India's three analysts is for revenues of ₹108.8b in 2026. This reflects a huge 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 46% to ₹29.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹108.4b and earnings per share (EPS) of ₹28.37 in 2026. So the consensus seems to have become somewhat more optimistic on ITD Cementation India's earnings potential following these results.

The consensus price target was unchanged at ₹609, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ITD Cementation India at ₹648 per share, while the most bearish prices it at ₹553. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ITD Cementation India is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that ITD Cementation India's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2026 being well below the historical 28% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. Even after the forecast slowdown in growth, it seems obvious that ITD Cementation India is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ITD Cementation India's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider 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. We have estimates - from multiple ITD Cementation India analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - ITD Cementation India has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.