Narayana Hrudayalaya Limited Just Beat EPS By 5.1%: Here's What Analysts Think Will Happen Next
It's been a good week for Narayana Hrudayalaya Limited (NSE:NH) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.2% to ₹1,871. Narayana Hrudayalaya reported ₹28b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹14.82 beat expectations, being 5.1% higher than what the analysts expected. 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.
Following the latest results, Narayana Hrudayalaya's twelve analysts are now forecasting revenues of ₹110.3b in 2027. This would be a reasonable 7.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 23% to ₹52.41. Before this earnings report, the analysts had been forecasting revenues of ₹109.8b and earnings per share (EPS) of ₹52.48 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.
View our latest analysis for Narayana Hrudayalaya
There were no changes to revenue or earnings estimates or the price target of ₹2,266, suggesting that the company has met expectations in its recent result. 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. The most optimistic Narayana Hrudayalaya analyst has a price target of ₹2,559 per share, while the most pessimistic values it at ₹1,865. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 18% annually. So it's pretty clear that Narayana Hrudayalaya is expected to grow slower than similar companies in the same industry.
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Narayana Hrudayalaya's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹2,266, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Narayana Hrudayalaya. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Narayana Hrudayalaya going out to 2029, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Narayana Hrudayalaya , and understanding it should be part of your investment process.
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