Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) recently reported its quarterly numbers. Revenues of ₹29b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹13.51, missing estimates by 2.6%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Torrent Pharmaceuticals

Taking into account the latest results, the consensus forecast from Torrent Pharmaceuticals' 29 analysts is for revenues of ₹120.4b in 2025. This reflects a meaningful 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 17% to ₹60.08. In the lead-up to this report, the analysts had been modelling revenues of ₹120.8b and earnings per share (EPS) of ₹60.26 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 10% to ₹3,210. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Torrent Pharmaceuticals, with the most bullish analyst valuing it at ₹3,603 and the most bearish at ₹2,198 per share. 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.

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 clear from the latest estimates that Torrent Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Torrent Pharmaceuticals to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Torrent Pharmaceuticals going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Torrent Pharmaceuticals .

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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.

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