Sagar Cements Limited (NSE:SAGCEM) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Sagar Cements Limited (NSE:SAGCEM) just released its latest yearly report and things are not looking great. It was a pretty negative result overall, with revenues of ₹23b missing analyst predictions by 2.7%. Worse, the business reported a statutory loss of ₹16.58 per share, much larger than the analysts had forecast prior to the result. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the six analysts covering Sagar Cements are now predicting revenues of ₹26.8b in 2026. If met, this would reflect a decent 18% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Sagar Cements forecast to report a statutory profit of ₹0.90 per share. Before this earnings announcement, the analysts had been modelling revenues of ₹28.0b and losses of ₹4.36 per share in 2026. While we note the minor downgrade to to the revenue outlook, the analysts are now also predicting for the business to become profitable next year - sooner than previously forecast - which looks like a pretty clear lift in expectations.

Check out our latest analysis for Sagar Cements

There's been no real change to the average price target of ₹243, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Sagar Cements analyst has a price target of ₹300 per share, while the most pessimistic values it at ₹198. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Sagar Cements'historical trends, as the 18% annualised revenue growth to the end of 2026 is roughly in line with the 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.0% per year. So it's pretty clear that Sagar Cements is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts now expect Sagar Cements to become profitable next year, compared to previous expectations that it would report a loss. They also downgraded Sagar Cements' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹243, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sagar Cements. Long-term earnings power is much more important than next year's profits. We have forecasts for Sagar Cements going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Sagar Cements (including 1 which can't be ignored) .

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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.