Industry Analysts Just Upgraded Their Techno Electric & Engineering Company Limited (NSE:TECHNOE) Revenue Forecasts By 20%

Celebrations may be in order for Techno Electric & Engineering Company Limited (NSE:TECHNOE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Techno Electric & Engineering will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Techno Electric & Engineering too, with the stock up 11% to ₹672 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the latest consensus from Techno Electric & Engineering's four analysts is for revenues of ₹16b in 2024, which would reflect a huge 29% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 43% to ₹18.68. Prior to this update, the analysts had been forecasting revenues of ₹13b and earnings per share (EPS) of ₹17.43 in 2024. The most recent forecasts are noticeably more optimistic, with a nice gain to revenue estimates and a lift to earnings per share as well.

View our latest analysis for Techno Electric & Engineering

With these upgrades, we're not surprised to see that the analysts have lifted their price target 23% to ₹527 per share.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Techno Electric & Engineering's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 66% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.003% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. Not only are Techno Electric & Engineering's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Techno Electric & Engineering.

Analysts are clearly in love with Techno Electric & Engineering at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.