Gland Pharma Limited Just Recorded A 8.8% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, Gland Pharma Limited (NSE:GLAND) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 6.3% to hit ₹67b. Statutory earnings per share (EPS) came in at ₹62.28, some 8.8% above whatthe analysts had expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Gland Pharma after the latest results.
Taking into account the latest results, the most recent consensus for Gland Pharma from 13 analysts is for revenues of ₹73.6b in 2027. If met, it would imply a decent 9.1% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 22% to ₹75.90. Before this earnings report, the analysts had been forecasting revenues of ₹72.2b and earnings per share (EPS) of ₹73.80 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Gland Pharma
The consensus price target rose 9.4% to ₹2,151, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Gland Pharma analyst has a price target of ₹2,600 per share, while the most pessimistic values it at ₹1,590. 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.
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. We would highlight that Gland Pharma's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2027 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Gland Pharma.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Gland Pharma following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 estimates - from multiple Gland Pharma analysts - going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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.