It's been a pretty great week for Piramal Pharma Limited (NSE:PPLPHARMA) shareholders, with its shares surging 18% to ₹231 in the week since its latest second-quarter results. It was a solid earnings report, with revenues and earnings both coming in very strong. Revenues were 11% higher than the analysts had forecast, at ₹26b, while the company also delivered a surprise statutory profit, against analyst expectations of a loss. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 consensus forecast from Piramal Pharma's ten analysts is for revenues of ₹105.9b in 2027. This reflects a meaningful 8.3% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Piramal Pharma forecast to report a statutory profit of ₹1.64 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹102.4b and earnings per share (EPS) of ₹1.45 in 2027. So it seems there's been a definite increase in optimism about Piramal Pharma's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.
View our latest analysis for Piramal Pharma
With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.0% to ₹251per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Piramal Pharma at ₹300 per share, while the most bearish prices it at ₹210. 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.
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. It's clear from the latest estimates that Piramal Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.2% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Piramal 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 Piramal Pharma 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Piramal Pharma 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 Piramal Pharma , and understanding this should be part of your investment process.
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