Stock Analysis

MedPlus Health Services Limited (NSE:MEDPLUS) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

NSEI:MEDPLUS
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Investors in MedPlus Health Services Limited (NSE:MEDPLUS) had a good week, as its shares rose 8.3% to close at ₹769 following the release of its third-quarter results. It was a credible result overall, with revenues of ₹16b and statutory earnings per share of ₹5.45 both in line with analyst estimates, showing that MedPlus Health Services is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MedPlus Health Services after the latest results.

View our latest analysis for MedPlus Health Services

earnings-and-revenue-growth
NSEI:MEDPLUS Earnings and Revenue Growth February 5th 2025

Taking into account the latest results, the current consensus from MedPlus Health Services' six analysts is for revenues of ₹72.5b in 2026. This would reflect a solid 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 49% to ₹16.45. In the lead-up to this report, the analysts had been modelling revenues of ₹74.4b and earnings per share (EPS) of ₹16.47 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of ₹953, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on MedPlus Health Services' market value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on MedPlus Health Services, with the most bullish analyst valuing it at ₹1,160 and the most bearish at ₹830 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MedPlus Health Services' past performance and to peers in the same industry. The period to the end of 2026 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 18% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.3% per year. So it's pretty clear that MedPlus Health Services is forecast to grow substantially faster than its 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at ₹953, with the latest estimates not enough to have an impact on their price targets.

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 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for MedPlus Health Services you should be aware of.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About NSEI:MEDPLUS

MedPlus Health Services

Engages in the retail trading of medicines and general items in India.

Solid track record with reasonable growth potential.

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