Analyst Estimates: Here's What Brokers Think Of Rossari Biotech Limited (NSE:ROSSARI) After Its Annual Report

Last week, you might have seen that Rossari Biotech Limited (NSE:ROSSARI) released its full-year result to the market. The early response was not positive, with shares down 3.7% to ₹733 in the past week. Rossari Biotech reported in line with analyst predictions, delivering revenues of ₹18b and statutory earnings per share of ₹23.62, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Rossari Biotech

Following the latest results, Rossari Biotech's three analysts are now forecasting revenues of ₹20.7b in 2025. This would be a meaningful 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 23% to ₹29.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹21.3b and earnings per share (EPS) of ₹29.37 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at ₹907even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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. There are some variant perceptions on Rossari Biotech, with the most bullish analyst valuing it at ₹936 and the most bearish at ₹860 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Rossari Biotech's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 28% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. Factoring in the forecast slowdown in growth, it looks like Rossari Biotech is forecast to grow at about the same rate as 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹907, 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. We have estimates - from multiple Rossari Biotech analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Rossari Biotech that you need to be mindful 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.