Ajanta Pharma Limited Just Beat EPS By 10%: Here's What Analysts Think Will Happen Next
Ajanta Pharma Limited (NSE:AJANTPHARM) just released its latest third-quarter results and things are looking bullish. Ajanta Pharma beat earnings, with revenues hitting ₹14b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 10%. 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.
Taking into account the latest results, the most recent consensus for Ajanta Pharma from twelve analysts is for revenues of ₹60.8b in 2027. If met, it would imply a decent 17% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 22% to ₹99.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹59.2b and earnings per share (EPS) of ₹97.34 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Check out our latest analysis for Ajanta Pharma
Despite these upgrades,the analysts have not made any major changes to their price target of ₹3,208, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Ajanta Pharma analyst has a price target of ₹3,742 per share, while the most pessimistic values it at ₹2,605. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2027 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. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So it's pretty clear that Ajanta Pharma is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ajanta Pharma's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₹3,208, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Ajanta Pharma going out to 2028, 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 Ajanta Pharma 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.