Stock Analysis

Krishna Institute of Medical Sciences Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

NSEI:KIMS
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A week ago, Krishna Institute of Medical Sciences Limited (NSE:KIMS) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 4.8% to hit ₹7.8b. Statutory earnings per share (EPS) came in at ₹2.68, some 9.7% above whatthe analysts had 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.

See our latest analysis for Krishna Institute of Medical Sciences

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NSEI:KIMS Earnings and Revenue Growth November 13th 2024

Taking into account the latest results, the current consensus from Krishna Institute of Medical Sciences' 13 analysts is for revenues of ₹30.7b in 2025. This would reflect a decent 13% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹29.9b and earnings per share (EPS) of ₹9.27 in 2025. What's really interesting is that while the consensus made a modest lift to revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

Additionally, the consensus price target for Krishna Institute of Medical Sciences rose 5.1% to ₹523, showing a clear increase in optimism from the the analysts involved. 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. Currently, the most bullish analyst values Krishna Institute of Medical Sciences at ₹670 per share, while the most bearish prices it at ₹406. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 clear from the latest estimates that Krishna Institute of Medical Sciences' rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 19% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% 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 important thing to take away is that the analysts upgraded their revenue estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

We have estimates for Krishna Institute of Medical Sciences from its 13 analysts out to 2027, and you can see them free on our platform here.

Even so, be aware that Krishna Institute of Medical Sciences is showing 1 warning sign in our investment analysis , you should know about...

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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.