Forecast: Analysts Think Neuland Laboratories Limited's (NSE:NEULANDLAB) Business Prospects Have Improved Drastically

Neuland Laboratories Limited (NSE:NEULANDLAB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market seems to be pricing in some improvement in the business too, with the stock up 9.9% over the past week, closing at ₹3,745. Could this big upgrade push the stock even higher?

Following the upgrade, the most recent consensus for Neuland Laboratories from its two analysts is for revenues of ₹14b in 2024 which, if met, would be a modest 2.0% increase on its sales over the past 12 months. Statutory earnings per share are supposed to sink 11% to ₹149 in the same period. Before this latest update, the analysts had been forecasting revenues of ₹12b and earnings per share (EPS) of ₹131 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Neuland Laboratories

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. We would highlight that Neuland Laboratories' revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Neuland Laboratories.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Neuland Laboratories' future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Neuland Laboratories going out as far as 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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.