JK Lakshmi Cement Limited Just Beat EPS By 16%: Here's What Analysts Think Will Happen Next

JK Lakshmi Cement Limited (NSE:JKLAKSHMI) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 3.6% to hit ₹17b. JK Lakshmi Cement reported statutory earnings per share (EPS) ₹12.10, which was a notable 16% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, JK Lakshmi Cement's 13 analysts are now forecasting revenues of ₹69.6b in 2026. This would be a decent 9.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 27% to ₹42.41. In the lead-up to this report, the analysts had been modelling revenues of ₹69.4b and earnings per share (EPS) of ₹41.34 in 2026. So the consensus seems to have become somewhat more optimistic on JK Lakshmi Cement's earnings potential following these results.

Check out our latest analysis for JK Lakshmi Cement

There's been no major changes to the consensus price target of ₹965, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values JK Lakshmi Cement at ₹1,174 per share, while the most bearish prices it at ₹684. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await JK Lakshmi Cement shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that JK Lakshmi Cement's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.7% per year. So it's clear with the acceleration in growth, JK Lakshmi Cement is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards JK Lakshmi Cement following these results. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that JK Lakshmi Cement's revenue is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple JK Lakshmi Cement analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for JK Lakshmi Cement that you need to be mindful of.

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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.