Earnings Update: RHI Magnesita India Limited (NSE:RHIM) Just Reported And Analysts Are Trimming Their Forecasts

RHI Magnesita India Limited (NSE:RHIM) shareholders are probably feeling a little disappointed, since its shares fell 3.5% to ₹575 in the week after its latest second-quarter results. It was a negative result overall, with revenues coming in 13% less than what the analyst expected, at ₹8.7b. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for RHI Magnesita India

Taking into account the latest results, the current consensus from RHI Magnesita India's one analyst is for revenues of ₹37.8b in 2025. This would reflect a modest 4.3% increase on its revenue over the past 12 months. Before this earnings report, the analyst had been forecasting revenues of ₹39.9b and earnings per share (EPS) of ₹16.60 in 2025. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

We'd also point out that thatthe analyst has made no major changes to their price target of ₹733.

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. We would highlight that RHI Magnesita India's revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2025 being well below the historical 33% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.3% annually. So it's clear that despite the slowdown in growth, RHI Magnesita India is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their revenue estimates for next year. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit 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.

One RHI Magnesita India broker/analyst has provided estimates out to 2027, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for RHI Magnesita India (1 is a bit concerning!) 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.