Growth Investors: Industry Analysts Just Upgraded Their Craftsman Automation Limited (NSE:CRAFTSMAN) Revenue Forecasts By 12%

Craftsman Automation Limited (NSE:CRAFTSMAN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the six analysts covering Craftsman Automation are now predicting revenues of ₹40b in 2024. If met, this would reflect a huge 41% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 58% to ₹166. Previously, the analysts had been modelling revenues of ₹36b and earnings per share (EPS) of ₹161 in 2024. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a slight bump in earnings per share estimates.

See our latest analysis for Craftsman Automation

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹3,852, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Craftsman Automation, with the most bullish analyst valuing it at ₹4,200 and the most bearish at ₹3,675 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Craftsman Automation's growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Craftsman Automation to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Craftsman Automation.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Craftsman Automation going out to 2025, and you can see them free on our platform here..

We also provide an overview of the Craftsman Automation Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.