Ambuja Cements Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Ambuja Cements Limited (NSE:AMBUJACEM) had a good week, as its shares rose 2.5% to close at ₹434 following the release of its first-quarter results. Revenues of ₹95b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹2.32 an impressive 38% ahead of estimates. 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 Ambuja Cements after the latest results.

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Following the latest results, Ambuja Cements' 40 analysts are now forecasting revenues of ₹436.4b in 2027. This would be a decent 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to crater 40% to ₹10.70 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹454.2b and earnings per share (EPS) of ₹11.54 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Check out our latest analysis for Ambuja Cements

The analysts made no major changes to their price target of ₹490, suggesting the downgrades are not expected to have a long-term impact on Ambuja Cements' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Ambuja Cements analyst has a price target of ₹639 per share, while the most pessimistic values it at ₹350. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Ambuja Cements' growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 3.0% annually. So it's clear with the acceleration in growth, Ambuja Cements 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. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit 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.

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. At Simply Wall St, we have a full range of analyst estimates for Ambuja Cements going out to 2029, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Ambuja Cements .

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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.