Concord Biotech Limited Just Missed EPS By 6.3%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Concord Biotech Limited (NSE:CONCORDBIO) released its second-quarter result to the market. The early response was not positive, with shares down 3.2% to ₹1,231 in the past week. Concord Biotech beat revenue expectations by 2.8%, at ₹3.1b. Statutory earnings per share (EPS) came in at ₹6.65, some 6.3% short of analyst estimates. 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 Concord Biotech from five analysts is for revenues of ₹13.0b in 2027. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to ₹31.77. In the lead-up to this report, the analysts had been modelling revenues of ₹13.0b and earnings per share (EPS) of ₹33.19 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Check out our latest analysis for Concord Biotech
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,562, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Concord Biotech, with the most bullish analyst valuing it at ₹1,700 and the most bearish at ₹1,360 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Concord Biotech is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Concord Biotech's growth to accelerate, with the forecast 23% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.2% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Concord Biotech is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Concord Biotech. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 Concord Biotech going out to 2029, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Concord Biotech , and understanding it should be part of your investment process.
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