Stock Analysis

Mankind Pharma Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

NSEI:MANKIND
Source: Shutterstock

As you might know, Mankind Pharma Limited (NSE:MANKIND) just kicked off its latest third-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 7.7% to hit ₹26b. Mankind Pharma reported statutory earnings per share (EPS) ₹11.31, which was a notable 15% above what the analysts had forecast. 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.

See our latest analysis for Mankind Pharma

earnings-and-revenue-growth
NSEI:MANKIND Earnings and Revenue Growth February 4th 2024

Following the latest results, Mankind Pharma's ten analysts are now forecasting revenues of ₹114.1b in 2025. This would be a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 25% to ₹53.76. In the lead-up to this report, the analysts had been modelling revenues of ₹113.5b and earnings per share (EPS) of ₹53.51 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹1,964, 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. Currently, the most bullish analyst values Mankind Pharma at ₹2,300 per share, while the most bearish prices it at ₹1,433. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Mankind Pharma'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. It's clear that while Mankind Pharma's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Mankind Pharma going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Valuation is complex, but we're helping make it simple.

Find out whether Mankind Pharma is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.