Analyst Estimates: Here's What Brokers Think Of Syngene International Limited (NSE:SYNGENE) After Its Second-Quarter Report
Investors in Syngene International Limited (NSE:SYNGENE) had a good week, as its shares rose 7.0% to close at ₹399 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of ₹8.3b and statutory earnings per share of ₹7.87. 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, Syngene International's eight analysts currently expect revenues in 2027 to be ₹35.9b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 61% to ₹7.55. Before this earnings report, the analysts had been forecasting revenues of ₹36.3b and earnings per share (EPS) of ₹8.11 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
Check out our latest analysis for Syngene International
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹503, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Syngene International, with the most bullish analyst valuing it at ₹735 and the most bearish at ₹400 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Syngene International's past performance and to peers in the same industry. We would highlight that Syngene International's revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2027 being well below the historical 7.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Syngene International.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Syngene International. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Syngene International's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹503, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Syngene International analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that Syngene International is showing 3 warning signs in our investment analysis , you should know about...
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