Brokers Are Upgrading Their Views On TD Power Systems Limited (NSE:TDPOWERSYS) With These New Forecasts
TD Power Systems Limited (NSE:TDPOWERSYS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. TD Power Systems has also found favour with investors, with the stock up a noteworthy 24% to ₹1,587 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the latest consensus from TD Power Systems' dual analysts is for revenues of ₹27b in 2027, which would reflect a major 25% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 34% to ₹23.65. Previously, the analysts had been modelling revenues of ₹24b and earnings per share (EPS) of ₹21.15 in 2027. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
See our latest analysis for TD Power Systems
It will come as no surprise to learn that the analysts have increased their price target for TD Power Systems 25% to ₹1,776 on the back of these upgrades.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting TD Power Systems' growth to accelerate, with the forecast 35% annualised growth to the end of 2027 ranking favourably alongside historical growth of 21% per annum 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that TD Power Systems is expected to grow much faster than its 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at TD Power Systems.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
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.