RHI Magnesita India Limited Just Beat Revenue Estimates By 6.7%

Investors in RHI Magnesita India Limited (NSE:RHIM) had a good week, as its shares rose 4.7% to close at ₹492 following the release of its quarterly results. Results overall were respectable, with statutory earnings of ₹9.81 per share roughly in line with what the analysts had forecast. Revenues of ₹10b came in 6.7% ahead of analyst predictions. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, RHI Magnesita India's three analysts are now forecasting revenues of ₹41.7b in 2026. This would be a reasonable 6.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 72% to ₹13.13. In the lead-up to this report, the analysts had been modelling revenues of ₹40.5b and earnings per share (EPS) of ₹13.17 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

View our latest analysis for RHI Magnesita India

Even though revenue forecasts increased, there was no change to the consensus price target of ₹623, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on RHI Magnesita India, with the most bullish analyst valuing it at ₹697 and the most bearish at ₹571 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that RHI Magnesita India's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.2% annually. Factoring in the forecast slowdown in growth, it's pretty clear that RHI Magnesita India 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 upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. The consensus price target held steady at ₹623, with the latest estimates not enough to have an impact on their price targets.

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 RHI Magnesita India going out to 2028, and you can see them free on our platform here..

You can also view our analysis of RHI Magnesita India's balance sheet, and whether we think RHI Magnesita India is carrying too much debt, for free on our platform here.

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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.