₹2,142 - That's What Analysts Think Caplin Point Laboratories Limited (NSE:CAPLIPOINT) Is Worth After These Results

As you might know, Caplin Point Laboratories Limited (NSE:CAPLIPOINT) recently reported its quarterly numbers. It was a workmanlike result, with revenues of ₹4.8b coming in 2.8% ahead of expectations, and statutory earnings per share of ₹59.90, in line with analyst appraisals. 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.

View our latest analysis for Caplin Point Laboratories

Following the latest results, Caplin Point Laboratories' three analysts are now forecasting revenues of ₹19.8b in 2025. This would be a satisfactory 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 5.5% to ₹68.52. Before this earnings report, the analysts had been forecasting revenues of ₹19.3b and earnings per share (EPS) of ₹65.27 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Caplin Point Laboratories 8.4% to ₹2,142on the back of these upgrades. 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 Caplin Point Laboratories at ₹2,366 per share, while the most bearish prices it at ₹1,981. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Caplin Point Laboratories is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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 Caplin Point Laboratories' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than 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.

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

It is also worth noting that we have found 1 warning sign for Caplin Point Laboratories that you need to take into consideration.

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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.