Earnings Miss: Kajaria Ceramics Limited Missed EPS By 6.0% And Analysts Are Revising Their Forecasts

Kajaria Ceramics Limited (NSE:KAJARIACER) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like the results were a bit of a negative overall. While revenues of ₹46b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit ₹26.48 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Kajaria Ceramics

Taking into account the latest results, the current consensus from Kajaria Ceramics' 28 analysts is for revenues of ₹51.0b in 2025. This would reflect a solid 10% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 19% to ₹31.47. In the lead-up to this report, the analysts had been modelling revenues of ₹52.9b and earnings per share (EPS) of ₹34.24 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of ₹1,458, suggesting the downgrades are not expected to have a long-term impact on Kajaria Ceramics' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kajaria Ceramics, with the most bullish analyst valuing it at ₹1,630 and the most bearish at ₹1,180 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 can infer from the latest estimates that forecasts expect a continuation of Kajaria Ceramics'historical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 15% annually. So it's pretty clear that Kajaria Ceramics is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kajaria Ceramics. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹1,458, with the latest estimates not enough to have an impact on their price targets.

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 Kajaria Ceramics analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Kajaria Ceramics that you need to take into consideration.

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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.