Stock Analysis

LMW Limited (NSE:LMW) Analysts Just Slashed Next Year's Estimates

One thing we could say about the analysts on LMW Limited (NSE:LMW) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for LMW from its two analysts is for revenues of ₹34b in 2026 which, if met, would be a reasonable 5.7% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 58% to ₹179. Prior to this update, the analysts had been forecasting revenues of ₹39b and earnings per share (EPS) of ₹281 in 2026. Indeed, we can see that the analysts are a lot more bearish about LMW's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for LMW

earnings-and-revenue-growth
NSEI:LMW Earnings and Revenue Growth January 30th 2025

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to ₹10,765.

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 LMW's revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2026 being well below the historical 23% 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 14% per year. Factoring in the forecast slowdown in growth, it seems obvious that LMW is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of LMW.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About NSEI:LMW

LMW

Manufactures and sells textile spinning machinery in India and internationally.

Flawless balance sheet with moderate growth potential.

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