Piramal Pharma Limited (NSE:PPLPHARMA) Just Reported And Analysts Have Been Lifting Their Price Targets
As you might know, Piramal Pharma Limited (NSE:PPLPHARMA) just kicked off its latest first-quarter results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of ₹23b leading estimates by 5.6%. Statutory losses were smaller than the analystsexpected, coming in at ₹0.52 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 most recent consensus for Piramal Pharma from eleven analysts is for revenues of ₹102.3b in 2027. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Piramal Pharma is also expected to turn profitable, with statutory earnings of ₹1.44 per share. Before this earnings report, the analysts had been forecasting revenues of ₹100.9b and earnings per share (EPS) of ₹1.37 in 2027. So the consensus seems to have become somewhat more optimistic on Piramal Pharma's earnings potential following these results.
See our latest analysis for Piramal Pharma
The consensus price target rose 13% to ₹231, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Piramal Pharma analyst has a price target of ₹265 per share, while the most pessimistic values it at ₹200. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Piramal Pharma's growth to accelerate, with the forecast 15% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.5% per annum over the past three 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. 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, there were no major changes to revenue forecasts, with the business still expected 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..
And what about risks? Every company has them, and we've spotted 1 warning sign for Piramal Pharma 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.