Lumax Auto Technologies Limited Just Recorded A 11% Revenue Beat: Here's What Analysts Think

Lumax Auto Technologies Limited (NSE:LUMAXTECH) just released its quarterly report and things are looking bullish. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 11% higher than the analysts had forecast, at ₹10b, while EPS of ₹6.08 beat analyst models by 8.6%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Lumax Auto Technologies' three analysts are now forecasting revenues of ₹43.5b in 2026. This would be a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 38% to ₹38.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹44.7b and earnings per share (EPS) of ₹40.35 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Lumax Auto Technologies

The average price target climbed 31% to ₹1,041despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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 Lumax Auto Technologies at ₹1,375 per share, while the most bearish prices it at ₹767. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lumax Auto Technologies' past performance and to peers in the same industry. We would highlight that Lumax Auto Technologies' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2026 being well below the historical 28% 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 8.8% annually. So it's pretty clear that, while Lumax Auto Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Lumax Auto Technologies going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Lumax Auto Technologies (of which 1 is concerning!) you should know about.

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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.