Shareholders will be ecstatic, with their stake up 24% over the past week following Shilpa Medicare Limited's (NSE:SHILPAMED) latest quarterly results. Results were roughly in line with estimates, with revenues of ₹4.7b and statutory earnings per share of ₹12.44. 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 current consensus from Shilpa Medicare's three analysts is for revenues of ₹19.0b in 2027. This would reflect a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 2.9% to ₹14.77 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹18.0b and earnings per share (EPS) of ₹13.40 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.
View our latest analysis for Shilpa Medicare
It will come as no surprise to learn that the analysts have increased their price target for Shilpa Medicare 20% to ₹724on the back of these upgrades. 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. The most optimistic Shilpa Medicare analyst has a price target of ₹870 per share, while the most pessimistic values it at ₹481. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 Shilpa Medicare's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. 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 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 Shilpa Medicare following these results. 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.
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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.