Lumax Industries Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Lumax Industries Limited (NSE:LUMAXIND) filed its second-quarter result this time last week. The early response was not positive, with shares down 4.5% to ₹5,086 in the past week. Statutory earnings per share of ₹55.62 unfortunately missed expectations by 11%, although it was encouraging to see revenues of ₹13b exceed expectations by 8.0%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Lumax Industries from three analysts is for revenues of ₹52.4b in 2027. If met, it would imply a solid 8.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.7% to ₹228. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹50.0b and earnings per share (EPS) of ₹246 in 2027. So it's pretty clear consensus is mixed on Lumax Industries after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

Check out our latest analysis for Lumax Industries

There's been no major changes to the price target of ₹7,043, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Lumax Industries, with the most bullish analyst valuing it at ₹8,031 and the most bearish at ₹6,484 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lumax Industries' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Lumax Industries'historical trends, as the 18% annualised revenue growth to the end of 2027 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So it's pretty clear that Lumax Industries is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lumax Industries. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹7,043, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Lumax Industries. Long-term earnings power is much more important than next year's profits. 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..

Before you take the next step you should know about the 2 warning signs for Lumax Industries that we have uncovered.

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