Crompton Greaves Consumer Electricals Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest third-quarter earnings release from Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON), an important milestone in the company's journey to build a stronger business. Revenues were in line with forecasts, at ₹17b, although statutory earnings per share came in 13% below what the analysts expected, at ₹1.34 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Crompton Greaves Consumer Electricals

Taking into account the latest results, the consensus forecast from Crompton Greaves Consumer Electricals' 29 analysts is for revenues of ₹83.1b in 2025. This reflects a decent 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 36% to ₹9.21. In the lead-up to this report, the analysts had been modelling revenues of ₹83.7b and earnings per share (EPS) of ₹9.74 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ₹332, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Crompton Greaves Consumer Electricals at ₹397 per share, while the most bearish prices it at ₹270. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 13% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So although Crompton Greaves Consumer Electricals is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Crompton Greaves Consumer Electricals. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Crompton Greaves Consumer Electricals' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹332, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Crompton Greaves Consumer Electricals going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Crompton Greaves Consumer Electricals that you should be aware of.

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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.