Lloyds Metals and Energy Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Lloyds Metals and Energy Limited (NSE:LLOYDSME) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a pretty bad result, all things considered. Although revenues of ₹57b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 31% to hit ₹18.38 per share. 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 consensus forecast from Lloyds Metals and Energy's six analysts is for revenues of ₹298.2b in 2027. This reflects a major 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 51% to ₹141. In the lead-up to this report, the analysts had been modelling revenues of ₹298.2b and earnings per share (EPS) of ₹141 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 Lloyds Metals and Energy

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.0% to ₹2,133. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Lloyds Metals and Energy at ₹2,389 per share, while the most bearish prices it at ₹1,879. This is a very narrow spread of estimates, implying either that Lloyds Metals and Energy is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 54% growth on an annualised basis. That is in line with its 52% 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 Lloyds Metals and Energy is forecast to grow substantially faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Lloyds Metals and Energy going out to 2029, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Lloyds Metals and Energy you should be aware of, and 1 of them shouldn't be ignored.

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