Aarti Drugs Limited (NSE:AARTIDRUGS) Just Reported And Analysts Have Been Lifting Their Price Targets

Last week, you might have seen that Aarti Drugs Limited (NSE:AARTIDRUGS) released its quarterly result to the market. The early response was not positive, with shares down 5.7% to ₹475 in the past week. It was a workmanlike result, with revenues of ₹6.5b coming in 2.1% ahead of expectations, and statutory earnings per share of ₹4.95, in line with analyst appraisals. The analyst 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've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Aarti Drugs from single analyst is for revenues of ₹26.0b in 2026. If met, it would imply an okay 5.0% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹21.50, roughly flat on the last 12 months. Before this earnings report, the analyst had been forecasting revenues of ₹26.9b and earnings per share (EPS) of ₹23.20 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Check out our latest analysis for Aarti Drugs

The average price target climbed 30% to ₹597despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting Aarti Drugs' growth to accelerate, with the forecast 10% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Aarti Drugs 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 analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

You can also view our analysis of Aarti Drugs' balance sheet, and whether we think Aarti Drugs is carrying too much debt, for free on our 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.