The Ramco Cements Limited Just Missed EPS By 5.8%: Here's What Analysts Think Will Happen Next

The Ramco Cements Limited (NSE:RAMCOCEM) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Ramco Cements beat revenue expectations by 2.2%, at ₹94b. Statutory earnings per share (EPS) came in at ₹15.77, some 5.8% short of analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ramco Cements after the latest results.

See our latest analysis for Ramco Cements

Taking into account the latest results, the most recent consensus for Ramco Cements from 21 analysts is for revenues of ₹100.8b in 2025. If met, it would imply a credible 7.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 51% to ₹22.96. In the lead-up to this report, the analysts had been modelling revenues of ₹101.1b and earnings per share (EPS) of ₹24.86 in 2025. 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.

The consensus price target held steady at ₹964, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Ramco Cements analyst has a price target of ₹2,750 per share, while the most pessimistic values it at ₹600. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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 7.0% annualised growth rate until the end of 2025 being well below the historical 14% 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 9.6% 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 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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

It is also worth noting that we have found 1 warning sign for Ramco Cements that you need to take into consideration.

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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.