Revenue Miss: Rajratan Global Wire Limited Fell 13% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

There's been a notable change in appetite for Rajratan Global Wire Limited (NSE:RAJRATAN) shares in the week since its third-quarter report, with the stock down 13% to ₹431. Revenues were ₹2.2b, 13% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹14.15 being in line with what the analysts forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Rajratan Global Wire

Following the latest results, Rajratan Global Wire's four analysts are now forecasting revenues of ₹12.0b in 2026. This would be a major 30% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 68% to ₹21.10. In the lead-up to this report, the analysts had been modelling revenues of ₹12.9b and earnings per share (EPS) of ₹25.13 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 12% to ₹656. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Rajratan Global Wire at ₹814 per share, while the most bearish prices it at ₹472. 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.

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. It's clear from the latest estimates that Rajratan Global Wire's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Rajratan Global Wire. They also downgraded Rajratan Global Wire's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Rajratan Global Wire going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Rajratan Global Wire (1 is potentially serious) 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.