Revenue Beat: Neuland Laboratories Limited Exceeded Revenue Forecasts By 8.1% And Analysts Are Updating Their Estimates

It's been a good week for Neuland Laboratories Limited (NSE:NEULANDLAB) shareholders, because the company has just released its latest third-quarter results, and the shares gained 9.1% to ₹6,770. Results overall were respectable, with statutory earnings of ₹127 per share roughly in line with what the analyst had forecast. Revenues of ₹3.9b came in 8.1% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for Neuland Laboratories

After the latest results, the lone analyst covering Neuland Laboratories are now predicting revenues of ₹17.1b in 2025. If met, this would reflect a notable 8.1% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹247, approximately in line with the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of ₹17.4b and earnings per share (EPS) of ₹234 in 2025. So the consensus seems to have become somewhat more optimistic on Neuland Laboratories' earnings potential following these results.

The consensus price target rose 55% to ₹5,875, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Neuland Laboratories' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. 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 most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Neuland Laboratories following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Neuland Laboratories' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Neuland Laboratories. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You can also see our analysis of Neuland Laboratories' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.