Here's What Analysts Are Forecasting For Somany Ceramics Limited (NSE:SOMANYCERA) After Its Second-Quarter Results

Somany Ceramics Limited (NSE:SOMANYCERA) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The result was positive overall - although revenues of ₹6.9b were in line with what the analysts predicted, Somany Ceramics surprised by delivering a statutory profit of ₹3.65 per share, modestly greater than expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Somany Ceramics from 13 analysts is for revenues of ₹28.3b in 2026. If met, it would imply a reasonable 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 36% to ₹18.59. Before this earnings report, the analysts had been forecasting revenues of ₹28.5b and earnings per share (EPS) of ₹20.31 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Somany Ceramics

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹599, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Somany Ceramics, with the most bullish analyst valuing it at ₹681 and the most bearish at ₹540 per share. This is a very narrow spread of estimates, implying either that Somany Ceramics is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Somany Ceramics' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Somany Ceramics'historical trends, as the 9.1% annualised revenue growth to the end of 2026 is roughly in line with the 11% 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 although Somany Ceramics is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Somany Ceramics. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹599, 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. At Simply Wall St, we have a full range of analyst estimates for Somany Ceramics going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Somany Ceramics , and understanding them should be part of your investment process.

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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.