Analysts Are Updating Their Laxmi Organic Industries Limited (NSE:LXCHEM) Estimates After Its Third-Quarter Results

Last week, you might have seen that Laxmi Organic Industries Limited (NSE:LXCHEM) released its third-quarter result to the market. The early response was not positive, with shares down 2.4% to ₹271 in the past week. Laxmi Organic Industries beat revenue expectations by 2.7%, at ₹6.9b. Statutory earnings per share (EPS) came in at ₹0.97, some 3.0% short of analyst estimates. Following the result, the analysts have 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Laxmi Organic Industries

Taking into account the latest results, the consensus forecast from Laxmi Organic Industries' four analysts is for revenues of ₹32.1b in 2025. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 94% to ₹7.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹32.7b and earnings per share (EPS) of ₹7.75 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹246 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Laxmi Organic Industries analyst has a price target of ₹260 per share, while the most pessimistic values it at ₹220. This is a very narrow spread of estimates, implying either that Laxmi Organic Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Laxmi Organic Industries' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Laxmi Organic Industries'historical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. So although Laxmi Organic Industries is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹246, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Laxmi Organic Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Laxmi Organic Industries going out to 2026, 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 Laxmi Organic Industries 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.