Earnings Update: The Ramco Cements Limited (NSE:RAMCOCEM) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

The Ramco Cements Limited (NSE:RAMCOCEM) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of ₹20b and statutory earnings per share of ₹15.77. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Ramco Cements

Taking into account the latest results, the current consensus from Ramco Cements' 23 analysts is for revenues of ₹92.6b in 2025. This would reflect an okay 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 64% to ₹19.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹95.5b and earnings per share (EPS) of ₹13.65 in 2025. Although the analysts have lowered their revenue forecasts, they've also made a sizeable expansion in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

The consensus has made no major changes to the price target of ₹869, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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 Ramco Cements at ₹1,060 per share, while the most bearish prices it at ₹600. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ramco Cements' past performance and to peers in the same industry. We would highlight that Ramco Cements' revenue growth is expected to slow, with the forecast 7.6% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.3% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Ramco Cements is still expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ramco Cements following these results. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. Even so, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Ramco Cements going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Ramco Cements has 2 warning signs (and 1 which doesn't sit too well with us) 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.