Aurobindo Pharma Limited (NSE:AUROPHARMA) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹1,271

Last week saw the newest annual earnings release from Aurobindo Pharma Limited (NSE:AUROPHARMA), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹290b and statutory earnings per share of ₹54.16 both in line with analyst estimates, showing that Aurobindo Pharma is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Aurobindo Pharma

After the latest results, the 24 analysts covering Aurobindo Pharma are now predicting revenues of ₹315.5b in 2025. If met, this would reflect a solid 8.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 23% to ₹66.84. In the lead-up to this report, the analysts had been modelling revenues of ₹314.6b and earnings per share (EPS) of ₹64.96 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 6.2% to ₹1,271, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Aurobindo Pharma, with the most bullish analyst valuing it at ₹1,440 and the most bearish at ₹980 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Aurobindo Pharma's growth to accelerate, with the forecast 8.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.9% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Aurobindo Pharma is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Aurobindo Pharma's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Aurobindo Pharma. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Aurobindo Pharma analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Aurobindo Pharma , and understanding this should be part of your investment process.

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