Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to ₹1,487 in the week after its latest yearly results. The result was positive overall - although revenues of ₹485b were in line with what the analysts predicted, Sun Pharmaceutical Industries surprised by delivering a statutory profit of ₹39.90 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Sun Pharmaceutical Industries

Following the latest results, Sun Pharmaceutical Industries' 34 analysts are now forecasting revenues of ₹535.2b in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to ₹46.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹538.4b and earnings per share (EPS) of ₹47.01 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,594, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Sun Pharmaceutical Industries at ₹1,827 per share, while the most bearish prices it at ₹1,270. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Sun Pharmaceutical Industries'historical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. It's clear that while Sun Pharmaceutical Industries' 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sun Pharmaceutical Industries. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sun Pharmaceutical Industries going out to 2027, and you can see them free on our platform here..

Even so, be aware that Sun Pharmaceutical Industries is showing 1 warning sign 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.