₹1,177: That's What Analysts Think MedPlus Health Services Limited (NSE:MEDPLUS) Is Worth After Its Latest Results

MedPlus Health Services Limited (NSE:MEDPLUS) shareholders are probably feeling a little disappointed, since its shares fell 4.0% to ₹878 in the week after its latest annual results. MedPlus Health Services reported in line with analyst predictions, delivering revenues of ₹38b and statutory earnings per share of ₹8.52, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for MedPlus Health Services

Taking into account the latest results, the current consensus from MedPlus Health Services' three analysts is for revenues of ₹50.1b in 2023, which would reflect a sizeable 33% increase on its sales over the past 12 months. Statutory earnings per share are predicted to soar 42% to ₹11.40. Before this earnings report, the analysts had been forecasting revenues of ₹50.2b and earnings per share (EPS) of ₹12.70 in 2023. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The average price target fell 5.4% to ₹1,177, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values MedPlus Health Services at ₹1,230 per share, while the most bearish prices it at ₹1,100. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting MedPlus Health Services' growth to accelerate, with the forecast 33% annualised growth to the end of 2023 ranking favourably alongside historical growth of 15% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MedPlus Health Services to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MedPlus Health Services. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.

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 MedPlus Health Services going out to 2025, and you can see them free on our platform here..

We also provide an overview of the MedPlus Health Services Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.