Alembic Pharmaceuticals Limited Just Recorded A 13% Revenue Beat: Here's What Analysts Think
It's been a good week for Alembic Pharmaceuticals Limited (NSE:APLLTD) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.9% to ₹834. Alembic Pharmaceuticals beat revenue forecasts by a solid 13% to hit ₹21b. Statutory earnings per share came in at ₹34.33, in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Alembic Pharmaceuticals' ten analysts is for revenues of ₹84.2b in 2027. This reflects a satisfactory 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 3.5% to ₹36.53. Before this earnings report, the analysts had been forecasting revenues of ₹82.2b and earnings per share (EPS) of ₹37.89 in 2027. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a satisfactory to revenue, the consensus also made a small dip in its earnings per share forecasts.
Check out our latest analysis for Alembic Pharmaceuticals
The consensus price target was unchanged at ₹943, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. Currently, the most bullish analyst values Alembic Pharmaceuticals at ₹1,132 per share, while the most bearish prices it at ₹780. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Alembic Pharmaceuticals' growth to accelerate, with the forecast 11% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Alembic Pharmaceuticals is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. They also upgraded their revenue forecasts, although the latest estimates suggest that Alembic Pharmaceuticals will grow in line with the overall industry. The consensus price target held steady at ₹943, 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 Alembic Pharmaceuticals going out to 2029, and you can see them free on our platform here..
Even so, be aware that Alembic Pharmaceuticals 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.