EN
Analysts Are Updating Their Lupin Limited (NSE:LUPIN) Estimates After Its Second-Quarter Results
Lupin Limited (NSE:LUPIN) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of ₹78b and statutory earnings per share of ₹25.14. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lupin after the latest results.
Taking into account the latest results, Lupin's 34 analysts currently expect revenues in 2027 to be ₹302.5b, approximately in line with the last 12 months. Statutory earnings per share are expected to decline 15% to ₹96.26 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹302.5b and earnings per share (EPS) of ₹96.26 in 2027. 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.
See our latest analysis for Lupin
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,446. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Lupin analyst has a price target of ₹3,096 per share, while the most pessimistic values it at ₹1,800. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 would highlight that revenue is expected to reverse, with a forecast 3.2% annualised decline to the end of 2027. That is a notable change from historical growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. It's pretty clear that Lupin's revenues are expected to perform substantially worse than the wider industry.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹2,446, 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 Lupin analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that Lupin is showing 1 warning sign in our investment analysis , you should know about...
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.