Rajratan Global Wire Limited (NSE:RAJRATAN) Analysts Just Cut Their EPS Forecasts Substantially

One thing we could say about the analysts on Rajratan Global Wire Limited (NSE:RAJRATAN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the four analysts covering Rajratan Global Wire are now predicting revenues of ₹11b in 2026. If met, this would reflect a sizeable 22% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 52% to ₹19.08. Before this latest update, the analysts had been forecasting revenues of ₹13b and earnings per share (EPS) of ₹25.13 in 2026. Indeed, we can see that the analysts are a lot more bearish about Rajratan Global Wire's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Rajratan Global Wire

It'll come as no surprise then, to learn that the analysts have cut their price target 17% to ₹616.

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. The analysts are definitely expecting Rajratan Global Wire's growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Rajratan Global Wire to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Rajratan Global Wire. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Rajratan Global Wire.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Rajratan Global Wire analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.