Star Cement Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

As you might know, Star Cement Limited (NSE:STARCEMENT) recently reported its third-quarter numbers. Revenues were ₹8.8b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹1.85, an impressive 23% ahead of estimates. 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 Star Cement after the latest results.

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Taking into account the latest results, the current consensus from Star Cement's eleven analysts is for revenues of ₹41.5b in 2027. This would reflect a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 15% to ₹10.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹41.5b and earnings per share (EPS) of ₹10.40 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Star Cement

There were no changes to revenue or earnings estimates or the price target of ₹288, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Star Cement, with the most bullish analyst valuing it at ₹376 and the most bearish at ₹179 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 pretty clear that there is an expectation that Star Cement's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.2% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Star Cement is still expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at ₹288, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Star Cement going out to 2028, and you can see them free on our platform here.

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

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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.