Revenue Beat: Transformers and Rectifiers (India) Limited Exceeded Revenue Forecasts By 72% And Analysts Are Updating Their Estimates

Transformers and Rectifiers (India) Limited (NSE:TRIL) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to ₹716 in the week after its latest quarterly results. Revenue of ₹3.2b beat expectations by an impressive 72%, while statutory earnings per share (EPS) were ₹3.24, in line with estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Transformers and Rectifiers (India)

Taking into account the latest results, the current consensus from Transformers and Rectifiers (India)'s dual analysts is for revenues of ₹20.9b in 2025. This would reflect a substantial 43% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 98% to ₹10.20. Before this earnings report, the analysts had been forecasting revenues of ₹17.3b and earnings per share (EPS) of ₹10.00 in 2025. There's clearly been a surge in bullishness around the company's revenue pipeline, even if there's no real change in earnings per share forecasts.

The analysts increased their price target 28% to ₹921, perhaps signalling that higher revenues are a strong leading indicator for Transformers and Rectifiers (India)'s valuation.

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 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. 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 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com