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Krsnaa Diagnostics Limited Just Missed Earnings - But Analysts Have Updated Their Models
Krsnaa Diagnostics Limited (NSE:KRSNAA) just released its latest third-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹1.7b, statutory earnings missed forecasts by 20%, coming in at just ₹5.88 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Krsnaa Diagnostics
Taking into account the latest results, the consensus forecast from Krsnaa Diagnostics' twin analysts is for revenues of ₹10.1b in 2026. This reflects a major 45% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 56% to ₹36.45. Before this earnings report, the analysts had been forecasting revenues of ₹10.1b and earnings per share (EPS) of ₹40.33 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 6.1% to ₹998, suggesting the revised estimates are not indicative of a weaker long-term future for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Krsnaa Diagnostics' past performance and to peers in the same industry. It's clear from the latest estimates that Krsnaa Diagnostics' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 17% p.a. over the past five 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Krsnaa Diagnostics is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Krsnaa Diagnostics going out as far as 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Krsnaa Diagnostics has 1 warning sign we think you should be aware of.
Valuation is complex, but we're here to simplify it.
Discover if Krsnaa Diagnostics might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About NSEI:KRSNAA
Very undervalued with flawless balance sheet.
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