Cipla Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
As you might know, Cipla Limited (NSE:CIPLA) recently reported its first-quarter numbers. Revenues were in line with forecasts, at ₹71b, although statutory earnings per share came in 10% below what the analysts expected, at ₹9.76 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 consensus forecast from Cipla's 36 analysts is for revenues of ₹309.9b in 2027. This reflects a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to ₹51.57. In the lead-up to this report, the analysts had been modelling revenues of ₹310.7b and earnings per share (EPS) of ₹52.02 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 Cipla
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,512. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Cipla, with the most bullish analyst valuing it at ₹1,768 and the most bearish at ₹1,170 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Cipla's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.1% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cipla is expected to grow at about the same rate as 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹1,512, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Cipla. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Cipla going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Cipla you should know about.
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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.