Stock Analysis

Krishna Institute of Medical Sciences Limited (NSE:KIMS) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

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NSEI:KIMS

Investors in Krishna Institute of Medical Sciences Limited (NSE:KIMS) had a good week, as its shares rose 5.1% to close at ₹2,235 following the release of its quarterly results. The result was positive overall - although revenues of ₹6.9b were in line with what the analysts predicted, Krishna Institute of Medical Sciences surprised by delivering a statutory profit of ₹10.82 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Krishna Institute of Medical Sciences

NSEI:KIMS Earnings and Revenue Growth August 10th 2024

Taking into account the latest results, the most recent consensus for Krishna Institute of Medical Sciences from eleven analysts is for revenues of ₹30.0b in 2025. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 18% to ₹46.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹29.6b and earnings per share (EPS) of ₹46.78 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹2,338, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Krishna Institute of Medical Sciences analyst has a price target of ₹2,745 per share, while the most pessimistic values it at ₹2,032. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of Krishna Institute of Medical Sciences'historical trends, as the 22% annualised revenue growth to the end of 2025 is roughly in line with the 19% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So it's pretty clear that Krishna Institute of Medical Sciences is forecast to grow substantially faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Krishna Institute of Medical Sciences. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Krishna Institute of Medical Sciences going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Krishna Institute of Medical Sciences 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.