Syngene International Limited (NSE:SYNGENE) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Syngene International Limited (NSE:SYNGENE) shareholders are probably feeling a little disappointed, since its shares fell 5.2% to ₹616 in the week after its latest second-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹9.1b, statutory earnings were in line with expectations, at ₹12.34 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Syngene International's eight analysts is for revenues of ₹38.5b in 2026. This would reflect an okay 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to descend 11% to ₹10.42 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹38.8b and earnings per share (EPS) of ₹10.25 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Syngene International

There were no changes to revenue or earnings estimates or the price target of ₹718, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Syngene International, with the most bullish analyst valuing it at ₹840 and the most bearish at ₹550 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 pretty clear that there is an expectation that Syngene International's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it seems obvious that Syngene International is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Syngene International's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹718, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Syngene International analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Syngene International's 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.