Earnings Miss: The Ramco Cements Limited Missed EPS By 24% And Analysts Are Revising Their Forecasts

The Ramco Cements Limited (NSE:RAMCOCEM) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a pretty bad result, all things considered. Although revenues of ₹22b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 24% to hit ₹3.27 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the consensus forecast from Ramco Cements' 23 analysts is for revenues of ₹93.1b in 2026. This reflects a modest 7.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 40% to ₹22.09. Before this earnings report, the analysts had been forecasting revenues of ₹92.8b and earnings per share (EPS) of ₹23.44 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Ramco Cements

The consensus price target held steady at ₹1,039, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ramco Cements at ₹1,312 per share, while the most bearish prices it at ₹650. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Ramco Cements'historical trends, as the 15% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.2% annually. So it's clear that not only is revenue growth expected to be maintained, but Ramco Cements is expected to grow meaningfully 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. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at ₹1,039, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Ramco Cements. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Ramco Cements going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Ramco Cements (1 is concerning!) that we have uncovered.

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.