Downgrade: Here's How Analysts See JK Lakshmi Cement Limited (NSE:JKLAKSHMI) Performing In The Near Term

Market forces rained on the parade of JK Lakshmi Cement Limited (NSE:JKLAKSHMI) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, JK Lakshmi Cement's 13 analysts currently expect revenues in 2025 to be ₹64b, approximately in line with the last 12 months. Statutory earnings per share are supposed to crater 29% to ₹21.58 in the same period. Before this latest update, the analysts had been forecasting revenues of ₹73b and earnings per share (EPS) of ₹29.50 in 2025. Indeed, we can see that the analysts are a lot more bearish about JK Lakshmi Cement's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for JK Lakshmi Cement

It'll come as no surprise then, to learn that the analysts have cut their price target 6.5% to ₹855.

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 JK Lakshmi Cement's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 3.1% per year. So it's clear that despite the slowdown in growth, JK Lakshmi Cement is still expected to grow meaningfully faster than the wider industry.

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. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Worse, JK Lakshmi Cement is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. You can learn more about our debt analysis for free on our platform here.

You can also see our analysis of JK Lakshmi Cement's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.