This Analyst Just Made An Incredible Upgrade To Their L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD) Earnings Forecasts

Shareholders in L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 13% to ₹391 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the latest consensus from L.G. Balakrishnan & Bros' lone analyst is for revenues of ₹18b in 2022, which would reflect a meaningful 10% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to be ₹42.10, roughly flat on the last 12 months. Previously, the analyst had been modelling revenues of ₹16b and earnings per share (EPS) of ₹26.70 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for L.G. Balakrishnan & Bros

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the L.G. Balakrishnan & Bros' past performance and to peers in the same industry. The analyst is definitely expecting L.G. Balakrishnan & Bros' growth to accelerate, with the forecast 10% annualised growth to the end of 2022 ranking favourably alongside historical growth of 3.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, L.G. Balakrishnan & Bros is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. With a serious upgrade to expectations, it might be time to take another look at L.G. Balakrishnan & Bros.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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