Results: LMW Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for LMW Limited (NSE:LMW) shareholders, because the company has just released its latest yearly results, and the shares gained 7.0% to ₹17,434. It looks like a credible result overall - although revenues of ₹31b were in line with what the analyst predicted, LMW surprised by delivering a statutory profit of ₹96.05 per share, a notable 10% above expectations. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

We've discovered 2 warning signs about LMW. View them for free.

Taking into account the latest results, the most recent consensus for LMW from sole analyst is for revenues of ₹33.7b in 2026. If met, it would imply a modest 7.5% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 97% to ₹190. Before this earnings report, the analyst had been forecasting revenues of ₹38.9b and earnings per share (EPS) of ₹264 in 2026. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for LMW

The average price target climbed 12% to ₹12,009despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that LMW's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.5% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% 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 biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for LMW. 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. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 LMW going out as far as 2028, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for LMW that you need to take into consideration.

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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.