Investors in Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) had a good week, as its shares rose 2.9% to close at ₹208 following the release of its half-year results. The result was positive overall - although revenues of ₹45b were in line with what the analysts predicted, Crompton Greaves Consumer Electricals surprised by delivering a statutory profit of ₹1.85 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Crompton Greaves Consumer Electricals from 30 analysts is for revenues of ₹92.3b in 2027. If met, it would imply a satisfactory 6.4% increase on its revenue over the past 12 months. Crompton Greaves Consumer Electricals is also expected to turn profitable, with statutory earnings of ₹9.14 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹91.8b and earnings per share (EPS) of ₹9.19 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 Crompton Greaves Consumer Electricals
There were no changes to revenue or earnings estimates or the price target of ₹319, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Crompton Greaves Consumer Electricals, with the most bullish analyst valuing it at ₹400 and the most bearish at ₹246 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Crompton Greaves Consumer Electricals' growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Crompton Greaves Consumer Electricals is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Crompton Greaves Consumer Electricals analysts - going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Crompton Greaves Consumer Electricals that you should be aware of.
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