Lakshmi Machine Works Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Lakshmi Machine Works Limited (NSE:LAXMIMACH), given that the company fell short of expectations when it released its full-year results last week. Results look to have been somewhat negative - revenue fell 2.1% short of analyst estimates at ₹48b, and statutory earnings of ₹350 per share missed forecasts by 6.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Lakshmi Machine Works

Taking into account the latest results, the current consensus, from the twin analysts covering Lakshmi Machine Works, is for revenues of ₹43.4b in 2025. This implies a chunky 10% reduction in Lakshmi Machine Works' revenue over the past 12 months. Statutory earnings per share are expected to shrink 9.6% to ₹316 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹50.9b and earnings per share (EPS) of ₹401 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.

The consensus price target fell 7.7% to ₹11,817, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 10% by the end of 2025. This indicates a significant reduction from annual growth of 25% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It's pretty clear that Lakshmi Machine Works' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lakshmi Machine Works. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have analyst estimates for Lakshmi Machine Works going out as far as 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Lakshmi Machine Works (including 1 which is potentially serious) .

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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.