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Revenue Beat: Craftsman Automation Limited Beat Analyst Estimates By 13%
Craftsman Automation Limited (NSE:CRAFTSMAN) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 13% higher than the analysts had forecast, at ₹29b, while EPS of ₹59.22 beat analyst models by 6.7%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Craftsman Automation from eight analysts is for revenues of ₹110.4b in 2027. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 21% to ₹243. In the lead-up to this report, the analysts had been modelling revenues of ₹97.3b and earnings per share (EPS) of ₹253 in 2027. While revenue forecasts have increased substantially, the analysts are a little more pessimistic on earnings, suggesting that the growth does not come without cost.
Check out our latest analysis for Craftsman Automation
There's been no major changes to the price target of ₹11,997, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. There are some variant perceptions on Craftsman Automation, with the most bullish analyst valuing it at ₹13,000 and the most bearish at ₹11,000 per share. This is a very narrow spread of estimates, implying either that Craftsman Automation is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Craftsman Automation'shistorical trends, as the 31% annualised revenue growth to the end of 2027 is roughly in line with the 30% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Craftsman Automation is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Craftsman Automation. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₹11,997, 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 Craftsman Automation analysts - 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 Craftsman Automation that we have uncovered.
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