Results: Sun Pharmaceutical Industries Limited Exceeded Expectations And The Consensus Has Updated Its Estimates
As you might know, Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) recently reported its quarterly numbers. Sun Pharmaceutical Industries reported ₹153b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹12.10 beat expectations, being 5.4% higher than what the analysts 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the 34 analysts covering Sun Pharmaceutical Industries are now predicting revenues of ₹651.0b in 2027. If met, this would reflect a meaningful 8.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.2% to ₹54.55. Before this earnings report, the analysts had been forecasting revenues of ₹654.3b and earnings per share (EPS) of ₹54.57 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Sun Pharmaceutical Industries
The analysts reconfirmed their price target of ₹2,154, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sun Pharmaceutical Industries analyst has a price target of ₹2,400 per share, while the most pessimistic values it at ₹1,830. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sun Pharmaceutical Industries is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sun Pharmaceutical Industries' past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. So although Sun Pharmaceutical Industries is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹2,154, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sun Pharmaceutical Industries going out to 2029, and you can see them free on our platform here..
Even so, be aware that Sun Pharmaceutical Industries is showing 1 warning sign in our investment analysis , you should know about...
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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.