It's been a good week for OneSource Specialty Pharma Limited (NSE:ONESOURCE) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.9% to ₹1,731. Revenues were ₹4.5b, with OneSource Specialty Pharma reporting some 9.4% below analyst expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from OneSource Specialty Pharma's four analysts is for revenues of ₹21.8b in 2027. This reflects a sizeable 41% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with OneSource Specialty Pharma forecast to report a statutory profit of ₹40.50 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹22.3b and earnings per share (EPS) of ₹36.10 in 2027. Although the analysts have lowered their revenue forecasts, they've also made a solid gain to their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
Check out our latest analysis for OneSource Specialty Pharma
There's been no real change to the average price target of ₹2,056, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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 OneSource Specialty Pharma analyst has a price target of ₹2,400 per share, while the most pessimistic values it at ₹1,676. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the OneSource Specialty Pharma's past performance and to peers in the same industry. It's clear from the latest estimates that OneSource Specialty Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 58% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.3% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect OneSource Specialty Pharma to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards OneSource Specialty Pharma following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at ₹2,056, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for OneSource Specialty Pharma going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for OneSource Specialty Pharma that you need to be mindful of.
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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.