Upgrade: Analysts Just Made A Notable Increase To Their Laxmi Organic Industries Limited (NSE:LXCHEM) Forecasts

Celebrations may be in order for Laxmi Organic Industries Limited (NSE:LXCHEM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Laxmi Organic Industries has also found favour with investors, with the stock up a noteworthy 10% to ₹477 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, Laxmi Organic Industries' dual analysts are now forecasting revenues of ₹30b in 2023. This would be a solid 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 19% to ₹10.62. Prior to this update, the analysts had been forecasting revenues of ₹26b and earnings per share (EPS) of ₹9.03 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Laxmi Organic Industries

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Laxmi Organic Industries' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 9.0% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Laxmi Organic Industries.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Laxmi Organic Industries' future.

Still, 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.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.