Earnings Update: Cipla Limited (NSE:CIPLA) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

Last week saw the newest annual earnings release from Cipla Limited (NSE:CIPLA), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹254b and statutory earnings per share of ₹51.01 both in line with analyst estimates, showing that Cipla 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.

Check out our latest analysis for Cipla

After the latest results, the 28 analysts covering Cipla are now predicting revenues of ₹280.1b in 2025. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to ₹57.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹279.9b and earnings per share (EPS) of ₹55.83 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 was unchanged at ₹1,463, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cipla analyst has a price target of ₹1,780 per share, while the most pessimistic values it at ₹1,029. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 9.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Cipla is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cipla following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 forecasts for Cipla going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Cipla's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.