Ratnamani Metals & Tubes Limited (NSE:RATNAMANI) just released its latest quarterly report and things are not looking great. Unfortunately, Ratnamani Metals & Tubes delivered a serious earnings miss. Revenues of ₹9.7b were 15% below expectations, and statutory earnings per share of ₹11.70 missed estimates by 38%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Ratnamani Metals & Tubes from five analysts is for revenues of ₹48.9b in 2027. If met, it would imply a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 18% to ₹73.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.6b and earnings per share (EPS) of ₹80.38 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
See our latest analysis for Ratnamani Metals & Tubes
It'll come as no surprise then, to learn that the analysts have cut their price target 5.1% to ₹2,508. 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 Ratnamani Metals & Tubes at ₹2,817 per share, while the most bearish prices it at ₹2,190. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Ratnamani Metals & Tubes' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ratnamani Metals & Tubes to grow 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ratnamani Metals & Tubes' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Ratnamani Metals & Tubes analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Ratnamani Metals & Tubes 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.