Analysts Have Made A Financial Statement On UltraTech Cement Limited's (NSE:ULTRACEMCO) Yearly Report

Investors in UltraTech Cement Limited (NSE:ULTRACEMCO) had a good week, as its shares rose 3.2% to close at ₹9,972 following the release of its full-year results. It was a credible result overall, with revenues of ₹709b and statutory earnings per share of ₹243 both in line with analyst estimates, showing that UltraTech Cement is executing in line with expectations. 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 UltraTech Cement after the latest results.

Check out our latest analysis for UltraTech Cement

Taking into account the latest results, the most recent consensus for UltraTech Cement from 32 analysts is for revenues of ₹779.0b in 2025. If met, it would imply a solid 9.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 22% to ₹297. Before this earnings report, the analysts had been forecasting revenues of ₹786.5b and earnings per share (EPS) of ₹311 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹10,938, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on UltraTech Cement, with the most bullish analyst valuing it at ₹12,500 and the most bearish at ₹7,200 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await UltraTech Cement shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UltraTech Cement's past performance and to peers in the same industry. We would highlight that UltraTech Cement's revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 4.1% per year. Factoring in the forecast slowdown in growth, it's pretty clear that UltraTech Cement is still expected to grow 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 UltraTech Cement. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that UltraTech Cement's revenue is expected to perform better than the wider industry. The consensus price target held steady at ₹10,938, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for UltraTech Cement going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for UltraTech Cement you should know about.

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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.