Analysts Have Made A Financial Statement On Lumax Auto Technologies Limited's (NSE:LUMAXTECH) Third-Quarter Report

Lumax Auto Technologies Limited (NSE:LUMAXTECH) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to ₹535 in the week after its latest third-quarter results. It was a workmanlike result, with revenues of ₹9.1b coming in 2.9% ahead of expectations, and statutory earnings per share of ₹19.10, in line with analyst appraisals. 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 Lumax Auto Technologies after the latest results.

See our latest analysis for Lumax Auto Technologies

Following the latest results, Lumax Auto Technologies' four analysts are now forecasting revenues of ₹38.5b in 2026. This would be a meaningful 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 29% to ₹31.08. Before this earnings report, the analysts had been forecasting revenues of ₹38.2b and earnings per share (EPS) of ₹31.05 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹691, 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. The most optimistic Lumax Auto Technologies analyst has a price target of ₹767 per share, while the most pessimistic values it at ₹483. 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 Lumax Auto Technologies shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Lumax Auto Technologies' revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2026 being well below the historical 25% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% annually. Even after the forecast slowdown in growth, it seems obvious that Lumax Auto Technologies is also 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹691, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Lumax Auto Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Lumax Auto Technologies going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Lumax Auto Technologies has 1 warning sign we think you should be aware of.

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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.