Lupin Limited (NSE:LUPIN) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

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 3.2%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Lupin

Taking into account the latest results, the consensus forecast from Lupin's 32 analysts is for revenues of ₹216.6b in 2025. This reflects a meaningful 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 26% to ₹52.95. Before this earnings report, the analysts had been forecasting revenues of ₹216.9b and earnings per share (EPS) of ₹52.80 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹1,621, showing that the business is executing well and in line with expectations. 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 Lupin, with the most bullish analyst valuing it at ₹1,959 and the most bearish at ₹1,192 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 8.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10.0% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Lupin is expected to grow slower 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, 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. 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.

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 forecasts for Lupin going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Lupin that you should be aware of.

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.

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