Earnings Update: Here's Why Analysts Just Lifted Their Anupam Rasayan India Ltd. (NSE:ANURAS) Price Target To ₹988

Anupam Rasayan India Ltd. (NSE:ANURAS) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of ₹3.1b and statutory earnings per share of ₹15.18 both in line with analyst estimates, showing that Anupam Rasayan India is executing 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.

See our latest analysis for Anupam Rasayan India

Taking into account the latest results, the most recent consensus for Anupam Rasayan India from five analysts is for revenues of ₹14.5b in 2023 which, if met, would be a sizeable 27% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 31% to ₹20.93. Before this earnings report, the analysts had been forecasting revenues of ₹14.5b and earnings per share (EPS) of ₹21.72 in 2023. 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.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.4% to ₹988, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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 Anupam Rasayan India analyst has a price target of ₹1,180 per share, while the most pessimistic values it at ₹830. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Anupam Rasayan India's past performance and to peers in the same industry. It's clear from the latest estimates that Anupam Rasayan India's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 25% over the past year. 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Anupam Rasayan India to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Anupam Rasayan India. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Anupam Rasayan India. Long-term earnings power is much more important than next year's profits. We have forecasts for Anupam Rasayan India going out to 2025, and you can see them free on our platform here.

It might also be worth considering whether Anupam Rasayan India's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.