It's been a good week for Krishna Institute of Medical Sciences Limited (NSE:KIMS) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to ₹1,262. Krishna Institute of Medical Sciences reported in line with analyst predictions, delivering revenues of ₹5.0b and statutory earnings per share of ₹41.88, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Krishna Institute of Medical Sciences' three analysts is for revenues of ₹22.0b in 2023, which would reflect a sizeable 32% increase on its sales over the past 12 months. Per-share earnings are expected to soar 22% to ₹47.65. In the lead-up to this report, the analysts had been modelling revenues of ₹21.4b and earnings per share (EPS) of ₹46.88 in 2023. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.
Even though revenue forecasts increased, there was no change to the consensus price target of ₹1,417, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Krishna Institute of Medical Sciences, with the most bullish analyst valuing it at ₹1,603 and the most bearish at ₹1,153 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Krishna Institute of Medical Sciences shareholders.
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 Krishna Institute of Medical Sciences' growth to accelerate, with the forecast 44% annualised growth to the end of 2023 ranking favourably alongside historical growth of 4.4% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Krishna Institute of Medical Sciences to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Krishna Institute of Medical Sciences going out to 2025, and you can see them free on our platform here.
It might also be worth considering whether Krishna Institute of Medical Sciences' 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.
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