Results: JK Lakshmi Cement Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week saw the newest quarterly earnings release from JK Lakshmi Cement Limited (NSE:JKLAKSHMI), an important milestone in the company's journey to build a stronger business. Revenues of ₹15b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹5.05 an impressive 28% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on JK Lakshmi Cement after the latest results.

Check out our latest analysis for JK Lakshmi Cement

Taking into account the latest results, the consensus forecast from JK Lakshmi Cement's 13 analysts is for revenues of ₹72.2b in 2026. This reflects a notable 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 73% to ₹40.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹73.3b and earnings per share (EPS) of ₹40.95 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹894, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values JK Lakshmi Cement at ₹1,096 per share, while the most bearish prices it at ₹691. 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.

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. It's clear from the latest estimates that JK Lakshmi Cement's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 9.9% p.a. 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 1.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect JK Lakshmi Cement to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple JK Lakshmi Cement analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with JK Lakshmi Cement , and understanding them should be part of your investment process.

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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.