Entero Healthcare Solutions Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Explore Entero Healthcare Solutions's Fair Values from the Community and select yours

Shareholders might have noticed that Entero Healthcare Solutions Limited (NSE:ENTERO) filed its first-quarter result this time last week. The early response was not positive, with shares down 8.2% to ₹1,185 in the past week. It looks like a credible result overall - although revenues of ₹14b were in line with what the analysts predicted, Entero Healthcare Solutions surprised by delivering a statutory profit of ₹6.38 per share, a notable 14% above expectations. 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.

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Taking into account the latest results, the current consensus from Entero Healthcare Solutions' four analysts is for revenues of ₹60.4b in 2026. This would reflect a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 49% to ₹35.23. Before this earnings report, the analysts had been forecasting revenues of ₹60.4b and earnings per share (EPS) of ₹35.23 in 2026. 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.

View our latest analysis for Entero Healthcare Solutions

There were no changes to revenue or earnings estimates or the price target of ₹1,497, suggesting that the company has met expectations in its recent result. 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 Entero Healthcare Solutions, with the most bullish analyst valuing it at ₹1,590 and the most bearish at ₹1,320 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Entero Healthcare Solutions is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that Entero Healthcare Solutions' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% annually. So it's pretty clear that, while Entero Healthcare Solutions' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Entero Healthcare Solutions analysts - going out to 2028, and you can see them free on our platform here.

It might also be worth considering whether Entero Healthcare Solutions' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.