Stock Analysis

Global Health Limited (NSE:MEDANTA) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

NSEI:MEDANTA
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Global Health Limited (NSE:MEDANTA) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to ₹1,335 in the week after its latest full-year results. Revenues of ₹33b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹17.80, missing estimates by 3.9%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Global Health

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NSEI:MEDANTA Earnings and Revenue Growth May 22nd 2024

Taking into account the latest results, the consensus forecast from Global Health's ten analysts is for revenues of ₹38.5b in 2025. This reflects a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 31% to ₹23.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹39.1b and earnings per share (EPS) of ₹23.34 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹1,384, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Global Health, with the most bullish analyst valuing it at ₹1,620 and the most bearish at ₹1,089 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 16% per year. It's clear that while Global Health's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹1,384, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Global Health analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.