₹3,165 - That's What Analysts Think Gland Pharma Limited (NSE:GLAND) Is Worth After These Results

Gland Pharma Limited (NSE:GLAND) just released its second-quarter report and things are looking bullish. The company beat expectations with revenues of ₹18b arriving 3.8% ahead of forecasts. Statutory earnings per share (EPS) were ₹17.62, 2.8% ahead of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Gland Pharma from 13 analysts is for revenues of ₹75.7b in 2027. If met, it would imply a credible 7.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.1% to ₹80.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹75.3b and earnings per share (EPS) of ₹79.54 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.

View our latest analysis for Gland Pharma

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.8% to ₹3,165. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Gland Pharma at ₹3,920 per share, while the most bearish prices it at ₹1,940. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gland Pharma's past performance and to peers in the same industry. It's clear from the latest estimates that Gland Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Gland Pharma is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. We have estimates - from multiple Gland Pharma analysts - going out to 2029, and you can see them free on our platform here.

You can also see our analysis of Gland Pharma's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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