Concord Biotech Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Concord Biotech Limited (NSE:CONCORDBIO) just released its second-quarter report and things are looking bullish. The company beat forecasts, with revenue of ₹3.1b, some 8.3% above estimates, and statutory earnings per share (EPS) coming in at ₹9.15, 24% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Concord Biotech

Taking into account the latest results, the current consensus from Concord Biotech's four analysts is for revenues of ₹12.1b in 2025. This would reflect a solid 11% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 13% to ₹35.33. In the lead-up to this report, the analysts had been modelling revenues of ₹12.3b and earnings per share (EPS) of ₹35.69 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.5% to ₹1,852. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Concord Biotech at ₹1,950 per share, while the most bearish prices it at ₹1,716. This is a very narrow spread of estimates, implying either that Concord Biotech is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The analysts are definitely expecting Concord Biotech's growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Concord Biotech to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Concord Biotech going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Concord Biotech 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.