Earnings Update: Here's Why Analysts Just Lifted Their Transformers and Rectifiers (India) Limited (NSE:TARIL) Price Target To ₹1,437

Shareholders might have noticed that Transformers and Rectifiers (India) Limited (NSE:TARIL) filed its second-quarter result this time last week. The early response was not positive, with shares down 9.6% to ₹1,120 in the past week. Results overall were respectable, with statutory earnings of ₹3.24 per share roughly in line with what the analysts had forecast. Revenues of ₹4.6b came in 3.7% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Transformers and Rectifiers (India)

After the latest results, the twin analysts covering Transformers and Rectifiers (India) are now predicting revenues of ₹20.5b in 2025. If met, this would reflect a decent 9.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 21% to ₹12.90. Before this earnings report, the analysts had been forecasting revenues of ₹20.9b and earnings per share (EPS) of ₹10.85 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 56% to ₹1,437.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 21% annually. It's clear that while Transformers and Rectifiers (India)'s revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Transformers and Rectifiers (India)'s earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Transformers and Rectifiers (India) going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Transformers and Rectifiers (India) is showing 1 warning sign in our investment analysis , 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.