Analyst Estimates: Here's What Brokers Think Of Glenmark Pharmaceuticals Limited (NSE:GLENMARK) After Its Second-Quarter Report
Shareholders of Glenmark Pharmaceuticals Limited (NSE:GLENMARK) will be pleased this week, given that the stock price is up 13% to ₹2,590 following its latest second-quarter results. Results overall were respectable, with statutory earnings of ₹48.24 per share roughly in line with what the analysts had forecast. Revenues of ₹42b came in 3.4% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the eight analysts covering Glenmark Pharmaceuticals are now predicting revenues of ₹169.5b in 2027. If met, this would reflect a reasonable 7.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 59% to ₹81.95. In the lead-up to this report, the analysts had been modelling revenues of ₹169.5b and earnings per share (EPS) of ₹81.95 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Glenmark Pharmaceuticals
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,513. 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. Currently, the most bullish analyst values Glenmark Pharmaceuticals at ₹2,750 per share, while the most bearish prices it at ₹2,100. This is a very narrow spread of estimates, implying either that Glenmark Pharmaceuticals is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 Glenmark Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.2% 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. Glenmark Pharmaceuticals is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 Glenmark Pharmaceuticals going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - Glenmark Pharmaceuticals has 1 warning sign we think you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.