Ajanta Pharma Limited Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next

Ajanta Pharma Limited (NSE:AJANTPHARM) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.3% to hit ₹11b. Ajanta Pharma reported statutory earnings per share (EPS) ₹19.53, which was a notable 11% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Ajanta Pharma

Taking into account the latest results, the consensus forecast from Ajanta Pharma's eleven analysts is for revenues of ₹47.3b in 2025. This reflects a meaningful 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 14% to ₹77.78. Before this earnings report, the analysts had been forecasting revenues of ₹47.0b and earnings per share (EPS) of ₹74.56 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.3% to ₹2,683. 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 Ajanta Pharma at ₹3,165 per share, while the most bearish prices it at ₹1,981. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ajanta Pharma shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Ajanta Pharma'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Ajanta Pharma is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ajanta Pharma following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Ajanta Pharma going out to 2027, and you can see them free on our platform here.

Even so, be aware that Ajanta Pharma 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.

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