Cera Sanitaryware Limited Just Missed EPS By 8.7%: Here's What Analysts Think Will Happen Next

It's been a good week for Cera Sanitaryware Limited (NSE:CERA) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.9% to ₹4,799. Cera Sanitaryware beat revenue expectations by 5.7%, at ₹6.0b. Statutory earnings per share (EPS) came in at ₹43.52, some 8.7% short of analyst 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Cera Sanitaryware from 14 analysts is for revenues of ₹24.1b in 2027. If met, it would imply a credible 6.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 19% to ₹186. In the lead-up to this report, the analysts had been modelling revenues of ₹23.5b and earnings per share (EPS) of ₹194 in 2027. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a credible to revenue, the consensus also made a small dip in its earnings per share forecasts.

View our latest analysis for Cera Sanitaryware

The consensus price target was unchanged at ₹6,687, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Cera Sanitaryware, with the most bullish analyst valuing it at ₹8,027 and the most bearish at ₹5,510 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Cera Sanitaryware's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Cera Sanitaryware is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cera Sanitaryware. They also upgraded their revenue forecasts, although the latest estimates suggest that Cera Sanitaryware will grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Cera Sanitaryware going out to 2029, and you can see them free on our platform here..

You can also see our analysis of Cera Sanitaryware's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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