Growth Investors: Industry Analysts Just Upgraded Their ITD Cementation India Limited (NSE:ITDCEM) Revenue Forecasts By 14%

ITD Cementation India Limited (NSE:ITDCEM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market may be pricing in some blue sky too, with the share price gaining 10% to ₹200 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

After this upgrade, ITD Cementation India's twin analysts are now forecasting revenues of ₹72b in 2024. This would be a substantial 23% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 57% to ₹13.35. Previously, the analysts had been modelling revenues of ₹63b and earnings per share (EPS) of ₹12.50 in 2024. The forecasts seem more optimistic now, with a nice increase in revenue and a slight bump in earnings per share estimates.

View our latest analysis for ITD Cementation India

It will come as no surprise to learn that the analysts have increased their price target for ITD Cementation India 42% to ₹213 on the back of these upgrades.

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. It's clear from the latest estimates that ITD Cementation India's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 17% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ITD Cementation India is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at ITD Cementation India.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.