R R Kabel Limited Just Missed EPS By 30%: Here's What Analysts Think Will Happen Next

The first-quarter results for R R Kabel Limited (NSE:RRKABEL) were released last week, making it a good time to revisit its performance. Statutory earnings per share fell badly short of expectations, coming in at ₹5.69, some 30% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹18b. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for R R Kabel

After the latest results, the ten analysts covering R R Kabel are now predicting revenues of ₹77.3b in 2025. If met, this would reflect a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 34% to ₹34.29. In the lead-up to this report, the analysts had been modelling revenues of ₹78.7b and earnings per share (EPS) of ₹36.64 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,978, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values R R Kabel at ₹2,300 per share, while the most bearish prices it at ₹1,578. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the R R Kabel's past performance and to peers in the same industry. The analysts are definitely expecting R R Kabel's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past year. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 20% per year. R R Kabel is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for R R Kabel. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on R R Kabel. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple R R Kabel analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that R R Kabel is showing 1 warning sign in our investment analysis , you should know about...

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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.

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