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Shilpa Medicare Limited Just Recorded A 12% Revenue Beat: Here's What Analysts Think
Last week saw the newest quarterly earnings release from Shilpa Medicare Limited (NSE:SHILPAMED), an important milestone in the company's journey to build a stronger business. Shilpa Medicare beat revenue forecasts by a solid 12% to hit ₹5.3b. Statutory earnings per share came in at ₹12.44, in line with expectations. 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.
Taking into account the latest results, the most recent consensus for Shilpa Medicare from four analysts is for revenues of ₹20.1b in 2027. If met, it would imply a decent 9.0% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decrease 5.9% to ₹16.00 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹18.9b and earnings per share (EPS) of ₹14.98 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
See our latest analysis for Shilpa Medicare
With these upgrades, we're not surprised to see that the analysts have lifted their price target 46% to ₹881per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Shilpa Medicare at ₹1,200 per share, while the most bearish prices it at ₹635. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. The analysts are definitely expecting Shilpa Medicare's growth to accelerate, with the forecast 19% annualised growth to the end of 2027 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Shilpa Medicare is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shilpa Medicare's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shilpa Medicare going out to 2029, and you can see them free on our platform here.
You can also see whether Shilpa Medicare is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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