UPL Limited Just Beat EPS By 87%: Here's What Analysts Think Will Happen Next
UPL Limited (NSE:UPL) came out with its interim results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were ₹119b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹4.99, an impressive 87% ahead of estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from UPL's 17 analysts is for revenues of ₹560.7b in 2027. This would reflect a modest 6.5% increase on its revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹564.6b and earnings per share (EPS) of ₹37.07 in 2027. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
Check out our latest analysis for UPL
The average price target fell 5.2% to ₹668, withthe analysts clearly having become less optimistic about UPL'sprospects following its latest earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values UPL at ₹781 per share, while the most bearish prices it at ₹551. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await UPL shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that UPL's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 1.6% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that UPL is expected to grow at about the same rate as the wider industry.
The Bottom Line
The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
We have estimates for UPL from its 17 analysts out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for UPL (1 doesn't sit too well with us!) that we have uncovered.
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