Dr. Agarwal's Health Care Limited (NSE:AGARWALEYE) Analysts Are Pretty Bullish On The Stock After Recent Results

Dr. Agarwal's Health Care Limited (NSE:AGARWALEYE) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to ₹506 in the week after its latest quarterly results. The result was positive overall - although revenues of ₹5.0b were in line with what the analysts predicted, Dr. Agarwal's Health Care surprised by delivering a statutory profit of ₹0.93 per share, modestly greater than 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Dr. Agarwal's Health Care's four analysts are now forecasting revenues of ₹20.7b in 2026. This would be a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.9% to ₹3.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹20.8b and earnings per share (EPS) of ₹3.80 in 2026. So the consensus seems to have become somewhat more optimistic on Dr. Agarwal's Health Care's earnings potential following these results.

Check out our latest analysis for Dr. Agarwal's Health Care

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.1% to ₹485. 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 Dr. Agarwal's Health Care analyst has a price target of ₹530 per share, while the most pessimistic values it at ₹430. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dr. Agarwal's Health Care's 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 21% growth on an annualised basis. That is in line with its 25% annual growth over the past year. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 19% per year. So although Dr. Agarwal's Health Care is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Dr. Agarwal's Health Care'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 Dr. Agarwal's Health Care going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.