₹294: That's What Analysts Think Indoco Remedies Limited (NSE:INDOCO) Is Worth After Its Latest Results

There's been a notable change in appetite for Indoco Remedies Limited (NSE:INDOCO) shares in the week since its third-quarter report, with the stock down 11% to ₹289. Indoco Remedies reported in line with analyst predictions, delivering revenues of ₹4.1b and statutory earnings per share of ₹10.51, 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. 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 Indoco Remedies

Taking into account the latest results, the consensus forecast from Indoco Remedies' five analysts is for revenues of ₹19.7b in 2026. This reflects a solid 14% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Indoco Remedies forecast to report a statutory profit of ₹8.90 per share. Before this earnings report, the analysts had been forecasting revenues of ₹20.5b and earnings per share (EPS) of ₹13.44 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.0% to ₹294. 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. There are some variant perceptions on Indoco Remedies, with the most bullish analyst valuing it at ₹338 and the most bearish at ₹241 per share. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of Indoco Remedies'historical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. So although Indoco Remedies 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 to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Indoco Remedies analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Indoco Remedies (1 makes us a bit uncomfortable!) that we have uncovered.

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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.