Ratnamani Metals & Tubes Limited (NSE:RATNAMANI) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a mediocre week for Ratnamani Metals & Tubes Limited (NSE:RATNAMANI) shareholders, with the stock dropping 10% to ₹2,494 in the week since its latest quarterly results. It was a workmanlike result, with revenues of ₹13b coming in 2.2% ahead of expectations, and statutory earnings per share of ₹89.18, in line with analyst appraisals. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Ratnamani Metals & Tubes

Taking into account the latest results, the most recent consensus for Ratnamani Metals & Tubes from dual analysts is for revenues of ₹60.8b in 2026. If met, it would imply a huge 22% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 49% to ₹113. Before this earnings report, the analysts had been forecasting revenues of ₹65.6b and earnings per share (EPS) of ₹104 in 2026. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

The consensus price target fell 9.4% to ₹3,557, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ratnamani Metals & Tubes' past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Ratnamani Metals & Tubes is expected to maintain its revenue growth rate, it's definitely 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 Ratnamani Metals & Tubes following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ratnamani Metals & Tubes' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Ratnamani Metals & Tubes has 1 warning sign we think 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.