Revenue Beat: Craftsman Automation Limited Beat Analyst Estimates By 12%
Investors in Craftsman Automation Limited (NSE:CRAFTSMAN) had a good week, as its shares rose 6.3% to close at ₹9,874 following the release of its quarterly results. It was a mildly positive result, with revenues exceeding expectations at ₹24b, while statutory earnings per share (EPS) of ₹161 were in line with analyst forecasts. Following the result, the analysts have 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the eight analysts covering Craftsman Automation are now predicting revenues of ₹99.8b in 2027. If met, this would reflect a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 43% to ₹254. Before this earnings report, the analysts had been forecasting revenues of ₹94.2b and earnings per share (EPS) of ₹232 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
View our latest analysis for Craftsman Automation
With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to ₹11,371per share. 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 Craftsman Automation at ₹12,800 per share, while the most bearish prices it at ₹9,699. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Craftsman Automation is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Craftsman Automation's past performance and to peers in the same industry. We would highlight that Craftsman Automation's revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2027 being well below the historical 30% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. So it's pretty clear that, while Craftsman Automation's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Craftsman Automation following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Craftsman Automation going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 1 warning sign for Craftsman Automation you should know about.
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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.