Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) Just Released Its Annual Results And Analysts Are Updating Their Estimates

It's been a good week for Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) shareholders, because the company has just released its latest yearly results, and the shares gained 9.1% to ₹351. Results were roughly in line with estimates, with revenues of ₹79b and statutory earnings per share of ₹8.64. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Crompton Greaves Consumer Electricals' 30 analysts is for revenues of ₹87.7b in 2026. This reflects a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 20% to ₹10.37. In the lead-up to this report, the analysts had been modelling revenues of ₹90.3b and earnings per share (EPS) of ₹10.83 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

See our latest analysis for Crompton Greaves Consumer Electricals

Despite the cuts to forecast earnings, there was no real change to the ₹429 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Crompton Greaves Consumer Electricals analyst has a price target of ₹491 per share, while the most pessimistic values it at ₹317. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Crompton Greaves Consumer Electricals shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Crompton Greaves Consumer Electricals' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Crompton Greaves Consumer Electricals.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Crompton Greaves Consumer Electricals. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Crompton Greaves Consumer Electricals analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Crompton Greaves Consumer Electricals that you need to take into consideration.

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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.