J.K. Cement Limited (NSE:JKCEMENT) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹5,016

It's been a good week for J.K. Cement Limited (NSE:JKCEMENT) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.5% to ₹4,831. Results overall were respectable, with statutory earnings of ₹102 per share roughly in line with what the analysts had forecast. Revenues of ₹29b came in 2.7% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on J.K. Cement after the latest results.

Check out our latest analysis for J.K. Cement

Taking into account the latest results, the consensus forecast from J.K. Cement's 20 analysts is for revenues of ₹130.8b in 2026. This reflects a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 41% to ₹131. In the lead-up to this report, the analysts had been modelling revenues of ₹133.1b and earnings per share (EPS) of ₹132 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.3% to ₹5,016despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of J.K. Cement's earnings by assigning a price premium. 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. Currently, the most bullish analyst values J.K. Cement at ₹5,797 per share, while the most bearish prices it at ₹2,874. 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.

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 J.K. Cement's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.5% per year. So it's pretty clear that, while J.K. Cement's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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

You should always think about risks though. Case in point, we've spotted 2 warning signs for J.K. Cement you should be aware of.

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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.