NATCO Pharma Limited Just Beat EPS By 223%: Here's What Analysts Think Will Happen Next

NATCO Pharma Limited (NSE:NATCOPHARM) investors will be delighted, with the company turning in some strong numbers with its latest results. Statutory revenue of ₹7.6b and earnings of ₹11.88 both blasted past expectations, beating expectations by 32% and 223%, respectively, ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NATCO Pharma after the latest results.

See our latest analysis for NATCO Pharma

Taking into account the latest results, the consensus forecast from NATCO Pharma's ten analysts is for revenues of ₹44.4b in 2025. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to ₹84.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹40.7b and earnings per share (EPS) of ₹72.65 in 2025. So it seems there's been a definite increase in optimism about NATCO Pharma's future following the latest results, with a nice gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for NATCO Pharma 10% to ₹912on the back of these upgrades. 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 NATCO Pharma at ₹1,125 per share, while the most bearish prices it at ₹620. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that NATCO Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. NATCO Pharma is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 NATCO Pharma following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on NATCO Pharma. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple NATCO Pharma analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that NATCO Pharma is showing 2 warning signs in our investment analysis , you should know about...

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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.