Vijaya Diagnostic Centre Limited Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, Vijaya Diagnostic Centre Limited (NSE:VIJAYA) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Vijaya Diagnostic Centre beat earnings, with revenues hitting ₹2.3b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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'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 Vijaya Diagnostic Centre's eight analysts is for revenues of ₹9.88b in 2027. This would reflect a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 20% to ₹21.83. Before this earnings report, the analysts had been forecasting revenues of ₹9.69b and earnings per share (EPS) of ₹20.99 in 2027. So the consensus seems to have become somewhat more optimistic on Vijaya Diagnostic Centre's earnings potential following these results.
Check out our latest analysis for Vijaya Diagnostic Centre
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to ₹1,456. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Vijaya Diagnostic Centre analyst has a price target of ₹1,600 per share, while the most pessimistic values it at ₹1,200. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vijaya Diagnostic Centre is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vijaya Diagnostic Centre's past performance and to peers in the same industry. It's clear from the latest estimates that Vijaya Diagnostic Centre's rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 15% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vijaya Diagnostic Centre is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vijaya Diagnostic Centre's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 forecasts for Vijaya Diagnostic Centre going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Vijaya Diagnostic Centre's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.