Laxmi Organic Industries Limited Just Beat Revenue By 6.1%: Here's What Analysts Think Will Happen Next

Shareholders of Laxmi Organic Industries Limited (NSE:LXCHEM) will be pleased this week, given that the stock price is up 13% to ₹277 following its latest quarterly results. It was a workmanlike result, with revenues of ₹7.7b coming in 6.1% ahead of expectations, and statutory earnings per share of ₹4.43, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Laxmi Organic Industries

Taking into account the latest results, the current consensus from Laxmi Organic Industries' five analysts is for revenues of ₹33.0b in 2025. This would reflect a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 28% to ₹6.20. Before this earnings report, the analysts had been forecasting revenues of ₹31.1b and earnings per share (EPS) of ₹6.50 in 2025. So it's pretty clear consensus is mixed on Laxmi Organic Industries after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

There's been no major changes to the price target of ₹245, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Laxmi Organic Industries, with the most bullish analyst valuing it at ₹265 and the most bearish at ₹218 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Laxmi Organic Industries' growth to accelerate, with the forecast 23% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.5% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Laxmi Organic Industries to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Laxmi Organic Industries. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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.

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 Laxmi Organic Industries analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Laxmi Organic Industries 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.