Results: JSW Cement Limited Beat Earnings Expectations And Analysts Now Have New Forecasts
JSW Cement Limited (NSE:JSWCEMENT) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of ₹19b, some 3.7% above estimates, and statutory earnings per share (EPS) coming in at ₹1.19, 25% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from JSW Cement's 14 analysts is for revenues of ₹81.9b in 2027. This would reflect a solid 16% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to nosedive 33% to ₹3.83 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹78.7b and earnings per share (EPS) of ₹4.01 in 2027. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a solid to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
Check out our latest analysis for JSW Cement
The consensus price target was unchanged at ₹150, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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 JSW Cement, with the most bullish analyst valuing it at ₹175 and the most bearish at ₹125 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 JSW Cement shareholders.
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. The analysts are definitely expecting JSW Cement's growth to accelerate, with the forecast 22% annualised growth to the end of 2027 ranking favourably alongside historical growth of 17% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 2.3% per year. So it's clear with the acceleration in growth, JSW Cement is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on JSW 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 JSW Cement going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for JSW Cement (1 shouldn't be ignored!) 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.