Dr. Lal PathLabs Limited Just Missed EPS By 5.4%: Here's What Analysts Think Will Happen Next

Dr. Lal PathLabs Limited (NSE:LALPATHLAB) just released its latest third-quarter report and things are not looking great. Results look to have been somewhat negative - revenue fell 3.6% short of analyst estimates at ₹5.4b, and statutory earnings of ₹9.76 per share missed forecasts by 5.4%. 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 Dr. Lal PathLabs after the latest results.

Check out our latest analysis for Dr. Lal PathLabs

After the latest results, the 18 analysts covering Dr. Lal PathLabs are now predicting revenues of ₹25.0b in 2025. If met, this would reflect a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 25% to ₹49.82. In the lead-up to this report, the analysts had been modelling revenues of ₹25.5b and earnings per share (EPS) of ₹50.19 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,410. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Dr. Lal PathLabs at ₹3,181 per share, while the most bearish prices it at ₹1,670. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We can infer from the latest estimates that forecasts expect a continuation of Dr. Lal PathLabs'historical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So although Dr. Lal PathLabs is expected to maintain its revenue growth rate, it's forecast to grow slower 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dr. Lal PathLabs' revenue is expected to perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Dr. Lal PathLabs going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Dr. Lal PathLabs that you should be aware of.

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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.