Vijaya Diagnostic Centre Limited Just Beat Revenue By 5.1%: Here's What Analysts Think Will Happen Next

Shareholders of Vijaya Diagnostic Centre Limited (NSE:VIJAYA) will be pleased this week, given that the stock price is up 18% to ₹803 following its latest full-year results. It was a workmanlike result, with revenues of ₹5.7b coming in 5.1% ahead of expectations, and statutory earnings per share of ₹11.59, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Vijaya Diagnostic Centre

Taking into account the latest results, the consensus forecast from Vijaya Diagnostic Centre's six analysts is for revenues of ₹6.79b in 2025. This reflects a solid 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 27% to ₹14.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹6.66b and earnings per share (EPS) of ₹14.33 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of ₹704, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Vijaya Diagnostic Centre at ₹910 per share, while the most bearish prices it at ₹600. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Vijaya Diagnostic Centre shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Vijaya Diagnostic Centre's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Vijaya Diagnostic Centre is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vijaya Diagnostic Centre's earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

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 estimates - from multiple Vijaya Diagnostic Centre 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.