Results: JK Lakshmi Cement Limited Exceeded Expectations And The Consensus Has Updated Its Estimates
JK Lakshmi Cement Limited (NSE:JKLAKSHMI) defied analyst predictions to release its quarterly results, which were ahead of market expectations. JK Lakshmi Cement beat earnings, with revenues hitting ₹19b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on JK Lakshmi Cement after the latest results.
Taking into account the latest results, the most recent consensus for JK Lakshmi Cement from 16 analysts is for revenues of ₹74.8b in 2027. If met, it would imply a notable 8.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.9% to ₹31.25. In the lead-up to this report, the analysts had been modelling revenues of ₹73.5b and earnings per share (EPS) of ₹34.31 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
See our latest analysis for JK Lakshmi Cement
The consensus price target held steady at ₹732, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values JK Lakshmi Cement at ₹1,020 per share, while the most bearish prices it at ₹556. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting JK Lakshmi Cement's growth to accelerate, with the forecast 11% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 4.0% per year. So it's clear with the acceleration in growth, JK Lakshmi Cement is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at ₹732, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple JK Lakshmi Cement analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with JK Lakshmi Cement .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.