Earnings Update: Lux Industries Limited (NSE:LUXIND) Just Reported And Analysts Are Trimming Their Forecasts
Last week saw the newest quarterly earnings release from Lux Industries Limited (NSE:LUXIND), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of ₹6.2b and statutory earnings per share of ₹34.52. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Following the latest results, Lux Industries' sole analyst are now forecasting revenues of ₹33.0b in 2027. This would be a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 45% to ₹49.50. In the lead-up to this report, the analyst had been modelling revenues of ₹34.8b and earnings per share (EPS) of ₹55.80 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
View our latest analysis for Lux Industries
The consensus price target fell 11% to ₹1,391, with the weaker earnings outlook clearly leading valuation estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Lux Industries' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Lux Industries is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Lux Industries' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
You still need to take note of risks, for example - Lux Industries has 1 warning sign 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.