Shree Cement Limited Just Beat EPS By 116%: Here's What Analysts Think Will Happen Next

Shree Cement Limited (NSE:SHREECEM) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.8% to hit ₹41b. Shree Cement also reported a statutory profit of ₹21.18, which was an impressive 116% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Shree Cement

Taking into account the latest results, the 27 analysts covering Shree Cement provided consensus estimates of ₹189.5b revenue in 2025, which would reflect a noticeable 4.7% decline over the past 12 months. Statutory earnings per share are expected to plummet 21% to ₹381 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹210.9b and earnings per share (EPS) of ₹531 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.

The analysts made no major changes to their price target of ₹25,825, suggesting the downgrades are not expected to have a long-term impact on Shree Cement's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Shree Cement analyst has a price target of ₹30,050 per share, while the most pessimistic values it at ₹17,550. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shree Cement's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 9.2% by the end of 2025. This indicates a significant reduction from annual growth of 12% 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 0.3% annually for the foreseeable future. So it's pretty clear that Shree Cement's revenues are expected to shrink faster than the wider 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 cut their revenue estimates for next year. Forecasts imply the business' revenue is expected to perform worse than the wider industry. That said, earnings per share are more important for creating value for shareholders. 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.

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 Shree Cement going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Shree Cement that you need to take into consideration.

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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.