Earnings Miss: Shree Cement Limited Missed EPS By 43% And Analysts Are Revising Their Forecasts

It's been a sad week for Shree Cement Limited (NSE:SHREECEM), who've watched their investment drop 13% to ₹24,143 in the week since the company reported its first-quarter result. Results overall were not great, with earnings of ₹77.22 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹51b and were slightly better than forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shree Cement after the latest results.

View our latest analysis for Shree Cement

Taking into account the latest results, the current consensus, from the 26 analysts covering Shree Cement, is for revenues of ₹199.6b in 2025. This implies a measurable 3.1% reduction in Shree Cement's revenue over the past 12 months. Statutory earnings per share are forecast to sink 11% to ₹517 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹221.9b and earnings per share (EPS) of ₹747 in 2025. Indeed, we can see that the analysts are a lot more bearish about Shree Cement's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.5% to ₹26,762. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Shree Cement, with the most bullish analyst valuing it at ₹30,662 and the most bearish at ₹18,000 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.2% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 5.5% annually for the foreseeable future. The forecasts do look comparatively optimistic for Shree Cement, since they're expecting it to shrink slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shree Cement. Unfortunately, they also downgraded their revenue estimates, and our data indicates that is expected to perform better than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Shree Cement. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Shree Cement going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Shree Cement 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.