Torrent Pharmaceuticals Limited Just Recorded A 7.2% EPS Beat: Here's What Analysts Are Forecasting Next
Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 4.2% to hit ₹49b. Statutory earnings per share (EPS) came in at ₹14.87, some 7.2% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Torrent Pharmaceuticals' 24 analysts is for revenues of ₹196.8b in 2027. This would reflect a substantial 25% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 17% to ₹67.09. Before this earnings report, the analysts had been forecasting revenues of ₹190.5b and earnings per share (EPS) of ₹69.17 in 2027. So it's pretty clear consensus is mixed on Torrent Pharmaceuticals after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.
View our latest analysis for Torrent Pharmaceuticals
Curiously, the consensus price target rose 6.7% to ₹5,241. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Torrent Pharmaceuticals analyst has a price target of ₹6,024 per share, while the most pessimistic values it at ₹4,116. 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 Torrent Pharmaceuticals shareholders.
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 analysts are definitely expecting Torrent Pharmaceuticals' growth to accelerate, with the forecast 35% annualised growth to the end of 2027 ranking favourably alongside historical growth of 12% 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 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Torrent Pharmaceuticals is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Torrent Pharmaceuticals going out to 2029, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Torrent Pharmaceuticals 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.