Craftsman Automation Limited Just Missed EPS By 34%: Here's What Analysts Think Will Happen Next

Investors in Craftsman Automation Limited (NSE:CRAFTSMAN) had a good week, as its shares rose 4.3% to close at ₹5,324 following the release of its first-quarter results. Results overall were not great, with earnings of ₹24.82 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹12b and were slightly better than 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Craftsman Automation

Taking into account the latest results, the most recent consensus for Craftsman Automation from seven analysts is for revenues of ₹52.8b in 2025. If met, it would imply a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 41% to ₹168. Before this earnings report, the analysts had been forecasting revenues of ₹50.2b and earnings per share (EPS) of ₹176 in 2025. So it's pretty clear consensus is mixed on Craftsman Automation after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The consensus price target was unchanged at ₹5,371, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Craftsman Automation at ₹6,520 per share, while the most bearish prices it at ₹4,450. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Craftsman Automation's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. Even after the forecast slowdown in growth, it seems obvious that Craftsman Automation is also 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 ₹5,371, with the latest estimates not enough to have an impact on their price targets.

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 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Craftsman Automation has 2 warning signs 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com