The Ramco Cements Limited Just Missed EPS By 44%: Here's What Analysts Think Will Happen Next

As you might know, The Ramco Cements Limited (NSE:RAMCOCEM) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹21b, statutory earnings missed forecasts by an incredible 44%, coming in at just ₹3.70 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Ramco Cements

Following the latest results, Ramco Cements' 21 analysts are now forecasting revenues of ₹102.6b in 2025. This would be a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 102% to ₹32.61. In the lead-up to this report, the analysts had been modelling revenues of ₹104.0b and earnings per share (EPS) of ₹33.17 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹1,008, suggesting that the company has met expectations in its recent result. 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. The most optimistic Ramco Cements analyst has a price target of ₹1,250 per share, while the most pessimistic values it at ₹661. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Ramco Cements' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 4.5% annually. 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 to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Ramco Cements' revenue is expected to perform better than the wider industry. 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.

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 Ramco Cements going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Ramco Cements that 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.