Earnings Update: Here's Why Analysts Just Lifted Their Caplin Point Laboratories Limited (NSE:CAPLIPOINT) Price Target To ₹1,764

Shareholders might have noticed that Caplin Point Laboratories Limited (NSE:CAPLIPOINT) filed its quarterly result this time last week. The early response was not positive, with shares down 8.5% to ₹1,501 in the past week. It was a workmanlike result, with revenues of ₹4.6b coming in 2.3% ahead of expectations, and statutory earnings per share of ₹59.90, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Caplin Point Laboratories

Following the latest results, Caplin Point Laboratories' three analysts are now forecasting revenues of ₹19.5b in 2025. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.9% to ₹65.27. In the lead-up to this report, the analysts had been modelling revenues of ₹20.0b and earnings per share (EPS) of ₹69.00 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

What's most unexpected is that the consensus price target rose 12% to ₹1,764, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Caplin Point Laboratories at ₹1,978 per share, while the most bearish prices it at ₹1,510. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Caplin Point Laboratories' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Caplin Point Laboratories'historical trends, as the 15% annualised revenue growth to the end of 2025 is roughly in line with the 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So it's pretty clear that Caplin Point Laboratories is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Caplin Point Laboratories. They also downgraded Caplin Point Laboratories' revenue estimates, but industry data suggests that it is expected 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Caplin Point Laboratories going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Caplin Point Laboratories Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.