Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) Annual Results: Here's What Analysts Are Forecasting For This Year
The full-year results for Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) were released last week, making it a good time to revisit its performance. Sun Pharmaceutical Industries reported in line with analyst predictions, delivering revenues of ₹585b and statutory earnings per share of ₹47.80, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Sun Pharmaceutical Industries' 33 analysts is for revenues of ₹654.1b in 2027. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 14% to ₹54.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹654.0b and earnings per share (EPS) of ₹54.82 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 Sun Pharmaceutical Industries
There were no changes to revenue or earnings estimates or the price target of ₹2,051, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Sun Pharmaceutical Industries, with the most bullish analyst valuing it at ₹2,366 and the most bearish at ₹1,650 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. It's clear that while Sun Pharmaceutical Industries' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 forecasts for Sun Pharmaceutical Industries going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Sun Pharmaceutical Industries , and understanding this should be part of your investment process.
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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.