Vijaya Diagnostic Centre Limited Beat Revenue Forecasts By 5.8%: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Vijaya Diagnostic Centre Limited (NSE:VIJAYA) shareholders, with its shares surging 15% to ₹1,119 in the week since its latest quarterly results. Results overall were respectable, with statutory earnings of ₹11.59 per share roughly in line with what the analysts had forecast. Revenues of ₹1.8b came in 5.8% ahead of analyst predictions. 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.

Check out our latest analysis for Vijaya Diagnostic Centre

Following the latest results, Vijaya Diagnostic Centre's six analysts are now forecasting revenues of ₹6.97b in 2025. This would be a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 16% to ₹15.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹6.95b and earnings per share (EPS) of ₹15.00 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹926. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Vijaya Diagnostic Centre analyst has a price target of ₹1,185 per share, while the most pessimistic values it at ₹660. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Vijaya Diagnostic Centre's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Vijaya Diagnostic Centre to grow faster than the wider 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. The consensus price target held steady at ₹926, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Vijaya Diagnostic Centre. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Vijaya Diagnostic Centre analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Vijaya Diagnostic Centre's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.