₹284 - That's What Analysts Think Piramal Pharma Limited (NSE:PPLPHARMA) Is Worth After These Results

It's been a good week for Piramal Pharma Limited (NSE:PPLPHARMA) shareholders, because the company has just released its latest second-quarter results, and the shares gained 8.4% to ₹244. Results overall were respectable, with statutory earnings of ₹0.14 per share roughly in line with what the analysts had forecast. Revenues of ₹22b came in 3.3% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Piramal Pharma

Following the latest results, Piramal Pharma's six analysts are now forecasting revenues of ₹93.0b in 2025. This would be a satisfactory 6.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 441% to ₹1.85. Before this earnings report, the analysts had been forecasting revenues of ₹92.4b and earnings per share (EPS) of ₹1.72 in 2025. So the consensus seems to have become somewhat more optimistic on Piramal Pharma's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 14% to ₹284. 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. The most optimistic Piramal Pharma analyst has a price target of ₹309 per share, while the most pessimistic values it at ₹240. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Piramal Pharma is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Piramal Pharma'shistorical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So although Piramal Pharma is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Piramal Pharma's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 Piramal Pharma. Long-term earnings power is much more important than next year's profits. We have forecasts for Piramal Pharma going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Piramal Pharma you should be aware of, and 1 of them makes us a bit uncomfortable.

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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.