Laxmi Organic Industries Limited (NSE:LXCHEM) Just Reported And Analysts Have Been Cutting Their Estimates

Laxmi Organic Industries Limited (NSE:LXCHEM) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to ₹199 in the week after its latest first-quarter results. It was a workmanlike result, with revenues of ₹6.9b coming in 2.7% ahead of expectations, and statutory earnings per share of ₹4.07, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Laxmi Organic Industries' four analysts is for revenues of ₹33.1b in 2026. This would reflect a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 20% to ₹4.35. In the lead-up to this report, the analysts had been modelling revenues of ₹35.0b and earnings per share (EPS) of ₹5.50 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

See our latest analysis for Laxmi Organic Industries

Despite the cuts to forecast earnings, there was no real change to the ₹204 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Laxmi Organic Industries at ₹247 per share, while the most bearish prices it at ₹179. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. For example, we noticed that Laxmi Organic Industries' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 16% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.3% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. So it looks like Laxmi Organic Industries is expected to grow faster than its competitors, at least for a while.

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. They also downgraded Laxmi Organic Industries' revenue estimates, but industry data suggests that it 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 forecasts for Laxmi Organic Industries going out to 2028, and you can see them free on our platform here.

You can also view our analysis of Laxmi Organic Industries' balance sheet, and whether we think Laxmi Organic Industries is carrying too much debt, for free on our platform 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.