Stock Analysis

Krsnaa Diagnostics Limited (NSE:KRSNAA) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

NSEI:KRSNAA
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It's been a good week for Krsnaa Diagnostics Limited (NSE:KRSNAA) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to ₹696. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.7b, statutory earnings were in line with expectations, at ₹5.55 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Krsnaa Diagnostics after the latest results.

See our latest analysis for Krsnaa Diagnostics

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NSEI:KRSNAA Earnings and Revenue Growth August 10th 2024

After the latest results, the three analysts covering Krsnaa Diagnostics are now predicting revenues of ₹7.63b in 2025. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 47% to ₹27.35. In the lead-up to this report, the analysts had been modelling revenues of ₹8.11b and earnings per share (EPS) of ₹26.80 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

There's been no real change to the average price target of ₹892, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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 Krsnaa Diagnostics, with the most bullish analyst valuing it at ₹955 and the most bearish at ₹841 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Krsnaa Diagnostics'historical trends, as the 24% annualised revenue growth to the end of 2025 is roughly in line with the 27% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. So although Krsnaa Diagnostics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Krsnaa Diagnostics' earnings potential next year. They also downgraded Krsnaa Diagnostics' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Krsnaa Diagnostics 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 2 warning signs for Krsnaa Diagnostics you should know about.

Valuation is complex, but we're here to simplify it.

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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.