Revenue Beat: Rajratan Global Wire Limited Exceeded Revenue Forecasts By 6.0% And Analysts Are Updating Their Estimates

Rajratan Global Wire Limited (NSE:RAJRATAN) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were respectable, with statutory earnings of ₹14.15 per share roughly in line with what the analysts had forecast. Revenues of ₹2.5b came in 6.0% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Rajratan Global Wire

Taking into account the latest results, the most recent consensus for Rajratan Global Wire from four analysts is for revenues of ₹10.1b in 2025. If met, it would imply a modest 7.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 15% to ₹16.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹10.7b and earnings per share (EPS) of ₹18.30 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹748 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Rajratan Global Wire at ₹922 per share, while the most bearish prices it at ₹626. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Rajratan Global Wire shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Rajratan Global Wire'shistorical trends, as the 15% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Rajratan Global Wire is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Rajratan Global Wire's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹748, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Rajratan Global Wire going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Rajratan Global Wire has 2 warning signs (and 1 which can't be ignored) we think 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.