Results: UltraTech Cement Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Last week saw the newest quarterly earnings release from UltraTech Cement Limited (NSE:ULTRACEMCO), an important milestone in the company's journey to build a stronger business. Revenues were ₹167b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹61.61 were also better than expected, beating analyst predictions by 12%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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.

View our latest analysis for UltraTech Cement

Taking into account the latest results, the current consensus from UltraTech Cement's 32 analysts is for revenues of ₹788.4b in 2025. This would reflect a solid 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 44% to ₹320. Before this earnings report, the analysts had been forecasting revenues of ₹787.7b and earnings per share (EPS) of ₹326 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.5% to ₹10,457, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. Currently, the most bullish analyst values UltraTech Cement at ₹12,300 per share, while the most bearish prices it at ₹7,150. 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.

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 UltraTech Cement'shistorical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 2.6% per year. So it's clear that not only is revenue growth expected to be maintained, but UltraTech Cement is expected to grow meaningfully 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. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple UltraTech Cement analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of UltraTech Cement's balance sheet, and whether we think UltraTech Cement 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.