Ajanta Pharma Limited (NSE:AJANTPHARM) Analysts Are Pretty Bullish On The Stock After Recent Results

Ajanta Pharma Limited (NSE:AJANTPHARM) just released its latest yearly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.2% to hit ₹43b. Statutory earnings per share (EPS) came in at ₹64.77, some 2.0% above whatthe analysts had expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ajanta Pharma after the latest results.

Check out our latest analysis for Ajanta Pharma

Taking into account the latest results, the consensus forecast from Ajanta Pharma's ten analysts is for revenues of ₹47.1b in 2025. This reflects a notable 9.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 14% to ₹74.00. In the lead-up to this report, the analysts had been modelling revenues of ₹47.1b and earnings per share (EPS) of ₹75.16 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.8% to ₹2,425. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Ajanta Pharma, with the most bullish analyst valuing it at ₹2,694 and the most bearish at ₹1,783 per share. 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.

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. We would highlight that Ajanta Pharma's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2025 being well below the historical 13% 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) 11% annually. Factoring in the forecast slowdown in growth, it looks like Ajanta Pharma 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Ajanta Pharma analysts - 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.