Revenue Beat: Lumax Industries Limited Beat Analyst Estimates By 6.3%
It's been a good week for Lumax Industries Limited (NSE:LUMAXIND) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.9% to ₹5,966. Results overall were respectable, with statutory earnings of ₹185 per share roughly in line with what the analysts had forecast. Revenues of ₹12b came in 6.3% ahead of analyst predictions. 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.
Taking into account the latest results, the most recent consensus for Lumax Industries from three analysts is for revenues of ₹50.0b in 2027. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 23% to ₹246. Before this earnings report, the analysts had been forecasting revenues of ₹49.7b and earnings per share (EPS) of ₹243 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Lumax Industries
The consensus price target rose 5.1% to ₹7,243despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Lumax Industries' earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Lumax Industries analyst has a price target of ₹8,065 per share, while the most pessimistic values it at ₹6,591. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. It's pretty clear that there is an expectation that Lumax Industries' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. So it's pretty clear that, while Lumax Industries' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. At Simply Wall St, we have a full range of analyst estimates for Lumax Industries going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Lumax Industries has 2 warning signs we think you should be aware 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.