Stock Analysis

Here's What Analysts Are Forecasting For Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) After Its Second-Quarter Results

Published
NSEI:APOLLOHOSP

It's been a good week for Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.5% to ₹7,421. The result was positive overall - although revenues of ₹56b were in line with what the analysts predicted, Apollo Hospitals Enterprise surprised by delivering a statutory profit of ₹26.34 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Apollo Hospitals Enterprise after the latest results.

Check out our latest analysis for Apollo Hospitals Enterprise

NSEI:APOLLOHOSP Earnings and Revenue Growth November 9th 2024

Taking into account the latest results, the current consensus from Apollo Hospitals Enterprise's 28 analysts is for revenues of ₹220.0b in 2025. This would reflect an okay 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 23% to ₹102. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹221.6b and earnings per share (EPS) of ₹102 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹7,641. 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 Apollo Hospitals Enterprise at ₹8,702 per share, while the most bearish prices it at ₹5,040. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. It's clear that while Apollo Hospitals Enterprise's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹7,641, 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. We have forecasts for Apollo Hospitals Enterprise going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Apollo Hospitals Enterprise's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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.