₹882 - That's What Analysts Think Rajratan Global Wire Limited (NSE:RAJRATAN) Is Worth After These Results

Rajratan Global Wire Limited (NSE:RAJRATAN) shareholders are probably feeling a little disappointed, since its shares fell 6.5% to ₹732 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of ₹2.1b and statutory earnings per share of ₹19.72. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Rajratan Global Wire

Taking into account the latest results, the consensus forecast from Rajratan Global Wire's four analysts is for revenues of ₹9.26b in 2024. This reflects a credible 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 17% to ₹16.53. Before this earnings report, the analysts had been forecasting revenues of ₹9.27b and earnings per share (EPS) of ₹15.98 in 2024. So the consensus seems to have become somewhat more optimistic on Rajratan Global Wire's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.9% to ₹882. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Rajratan Global Wire analyst has a price target of ₹1,047 per share, while the most pessimistic values it at ₹783. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rajratan Global Wire's past performance and to peers in the same industry. We would highlight that Rajratan Global Wire's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 17% 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) 8.4% per year. Even after the forecast slowdown in growth, it seems obvious that Rajratan Global Wire 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 Rajratan Global Wire'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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Rajratan Global Wire going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Rajratan Global Wire that you need to be mindful 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.