Ajanta Pharma Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

A week ago, Ajanta Pharma Limited (NSE:AJANTPHARM) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 12% higher than the analysts had forecast, at ₹18b, while EPS of ₹31.03 beat analyst models by 20%. 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. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Ajanta Pharma’s 13 analysts are now forecasting revenues of ₹63.7b in 2027. This would be a satisfactory 2.5% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹102, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹62.9b and earnings per share (EPS) of ₹100 in 2027. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.

See our latest analysis for Ajanta Pharma

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹3,827. 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. There are some variant perceptions on Ajanta Pharma, with the most bullish analyst valuing it at ₹4,250 and the most bearish at ₹3,109 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that Ajanta Pharma’s revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2027 being well below the historical 12% 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 12% 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 Ajanta Pharma.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹3,827, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Ajanta Pharma going out to 2029, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we’ve spotted with Ajanta Pharma .

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