Biocon Limited Just Beat EPS By 240%: Here's What Analysts Think Will Happen Next

Biocon Limited (NSE:BIOCON) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of ₹40b, some 7.6% above estimates, and statutory earnings per share (EPS) coming in at ₹5.51, 240% ahead of expectations. The analysts 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Biocon

Following the latest results, Biocon's 18 analysts are now forecasting revenues of ₹170.5b in 2025. This would be a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to drop 13% to ₹8.70 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹174.1b and earnings per share (EPS) of ₹10.28 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

The analysts made no major changes to their price target of ₹287, suggesting the downgrades are not expected to have a long-term impact on Biocon's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Biocon, with the most bullish analyst valuing it at ₹400 and the most bearish at ₹200 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's pretty clear that there is an expectation that Biocon's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.6% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 24% per year. Factoring in the forecast slowdown in growth, it seems obvious that Biocon is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Biocon. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹287, with the latest estimates not enough to have an impact on their price targets.

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 Biocon analysts - going out to 2026, 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 2 warning signs with Biocon (at least 1 which is significant) , and understanding these should be part of your investment process.

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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.