New Forecasts: Here's What Analysts Think The Future Holds For Transformers and Rectifiers (India) Limited (NSE:TRIL)

Celebrations may be in order for Transformers and Rectifiers (India) Limited (NSE:TRIL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Transformers and Rectifiers (India)'s dual analysts is for revenues of ₹21b in 2025 which - if met - would reflect a sizeable 43% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 92% to ₹9.90. Previously, the analysts had been modelling revenues of ₹17b and earnings per share (EPS) of ₹10.00 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Transformers and Rectifiers (India)

The consensus price target increased 28% to ₹921, with an improved revenue forecast carrying the promise of a more valuable business, in time.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Transformers and Rectifiers (India)'s rate of growth is expected to accelerate meaningfully, with the forecast 61% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% 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 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Transformers and Rectifiers (India) is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Transformers and Rectifiers (India).

Analysts are definitely bullish on Transformers and Rectifiers (India), but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 1 other warning sign 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 backed by insiders.

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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.

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