Analyst Estimates: Here's What Brokers Think Of Emcure Pharmaceuticals Limited (NSE:EMCURE) After Its Yearly Report

The investors in Emcure Pharmaceuticals Limited's (NSE:EMCURE) will be rubbing their hands together with glee today, after the share price leapt 21% to ₹1,284 in the week following its yearly results. Results were roughly in line with estimates, with revenues of ₹80b and statutory earnings per share of ₹36.43. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Emcure Pharmaceuticals' three analysts is for revenues of ₹89.0b in 2026. This would reflect a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 37% to ₹49.35. Before this earnings report, the analysts had been forecasting revenues of ₹87.1b and earnings per share (EPS) of ₹46.81 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Emcure Pharmaceuticals

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹1,458, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Emcure Pharmaceuticals at ₹1,625 per share, while the most bearish prices it at ₹1,350. This is a very narrow spread of estimates, implying either that Emcure Pharmaceuticals is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Emcure Pharmaceuticals' growth to accelerate, with the forecast 12% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Emcure Pharmaceuticals is expected to grow at about the same rate as 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 Emcure Pharmaceuticals' earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Emcure Pharmaceuticals will 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Emcure Pharmaceuticals. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Emcure Pharmaceuticals analysts - going out to 2028, and you can see them free on our platform here.

You can also view our analysis of Emcure Pharmaceuticals' balance sheet, and whether we think Emcure Pharmaceuticals is carrying too much debt, for free on our platform 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.