Analyst Estimates: Here's What Brokers Think Of Eris Lifesciences Limited (NSE:ERIS) After Its Third-Quarter Report

Last week, you might have seen that Eris Lifesciences Limited (NSE:ERIS) released its third-quarter result to the market. The early response was not positive, with shares down 4.7% to ₹866 in the past week. Eris Lifesciences reported in line with analyst predictions, delivering revenues of ₹4.9b and statutory earnings per share of ₹28.07, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Eris Lifesciences

Taking into account the latest results, the current consensus from Eris Lifesciences' ten analysts is for revenues of ₹24.0b in 2025. This would reflect a huge 31% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 21% to ₹34.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹23.1b and earnings per share (EPS) of ₹35.03 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of ₹1,069, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic Eris Lifesciences analyst has a price target of ₹1,230 per share, while the most pessimistic values it at ₹950. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 analysts are definitely expecting Eris Lifesciences' growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. 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 Eris Lifesciences 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,069, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Eris Lifesciences analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Eris Lifesciences .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.