Analysts Are Updating Their Lupin Limited (NSE:LUPIN) Estimates After Its Annual Results

As you might know, Lupin Limited (NSE:LUPIN) recently reported its full-year numbers. Revenues of ₹200b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹41.87, missing estimates by 3.1%. 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. 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 Lupin

Following the latest results, Lupin's 31 analysts are now forecasting revenues of ₹217.1b in 2025. This would be a solid 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 25% to ₹52.33. Before this earnings report, the analysts had been forecasting revenues of ₹217.4b and earnings per share (EPS) of ₹50.55 in 2025. So the consensus seems to have become somewhat more optimistic on Lupin's earnings potential following these results.

There's been no major changes to the consensus price target of ₹1,526, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Lupin at ₹1,949 per share, while the most bearish prices it at ₹840. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Lupin's rate of growth is expected to accelerate meaningfully, with the forecast 8.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. So it's clear that despite the acceleration in growth, Lupin is expected to grow meaningfully slower than the industry average.

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 Lupin following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lupin's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹1,526, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Lupin analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Lupin you should be aware of.

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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.