Laxmi Organic Industries Limited Just Recorded A 13% Revenue Beat: Here's What Analysts Think

It's been a pretty great week for Laxmi Organic Industries Limited (NSE:LXCHEM) shareholders, with its shares surging 10% to ₹477 in the week since its latest third-quarter results. Laxmi Organic Industries beat revenue forecasts by a solid 13% to hit ₹8.6b. Statutory earnings per share came in at ₹5.58, in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Laxmi Organic Industries

After the latest results, the twin analysts covering Laxmi Organic Industries are now predicting revenues of ₹30.3b in 2023. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to ₹10.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹26.4b and earnings per share (EPS) of ₹9.03 in 2023. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

It will come as no surprise to learn that the analysts have increased their price target for Laxmi Organic Industries 252% to ₹388on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Laxmi Organic Industries' revenue growth is expected to slow, with the forecast 9.0% annualised growth rate until the end of 2023 being well below the historical 19% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Laxmi Organic Industries is also expected to grow slower than other industry participants.

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 Laxmi Organic Industries following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Laxmi Organic Industries going out as far as 2024, 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.