Lloyds Metals and Energy Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a sad week for Lloyds Metals and Energy Limited (NSE:LLOYDSME), who've watched their investment drop 10% to ₹1,249 in the week since the company reported its quarterly result. Lloyds Metals and Energy missed revenue estimates by 8.2%, coming in at₹17b, although statutory earnings per share (EPS) of ₹7.04 beat expectations, coming in 5.1% ahead of analyst 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Lloyds Metals and Energy

Taking into account the latest results, the current consensus from Lloyds Metals and Energy's four analysts is for revenues of ₹166.6b in 2026. This would reflect a sizeable 135% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 206% to ₹89.25. Before this earnings report, the analysts had been forecasting revenues of ₹165.5b and earnings per share (EPS) of ₹87.70 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 42% to ₹1,689. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. The most optimistic Lloyds Metals and Energy analyst has a price target of ₹1,906 per share, while the most pessimistic values it at ₹1,571. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Lloyds Metals and Energy is an easy business to forecast or the the analysts are all using similar assumptions.

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 clear from the latest estimates that Lloyds Metals and Energy's rate of growth is expected to accelerate meaningfully, with the forecast 98% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 61% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Lloyds Metals and Energy to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Lloyds Metals and Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for Lloyds Metals and Energy going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Lloyds Metals and Energy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.