Stock Analysis

Vijaya Diagnostic Centre Limited Just Missed Earnings - But Analysts Have Updated Their Models

NSEI:VIJAYA
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Shareholders might have noticed that Vijaya Diagnostic Centre Limited (NSE:VIJAYA) filed its full-year result this time last week. The early response was not positive, with shares down 7.5% to ₹931 in the past week. Revenues of ₹7.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹13.92, missing estimates by 5.7%. 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.

earnings-and-revenue-growth
NSEI:VIJAYA Earnings and Revenue Growth May 15th 2025

Taking into account the latest results, the current consensus from Vijaya Diagnostic Centre's eight analysts is for revenues of ₹7.98b in 2026. This would reflect a solid 14% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 23% to ₹17.16. Before this earnings report, the analysts had been forecasting revenues of ₹8.30b and earnings per share (EPS) of ₹19.55 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for Vijaya Diagnostic Centre

Despite the cuts to forecast earnings, there was no real change to the ₹1,075 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Vijaya Diagnostic Centre analyst has a price target of ₹1,265 per share, while the most pessimistic values it at ₹855. 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. We can infer from the latest estimates that forecasts expect a continuation of Vijaya Diagnostic Centre'shistorical trends, as the 14% annualised revenue growth to the end of 2026 is roughly in line with the 13% 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 18% per year. So although Vijaya Diagnostic Centre is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vijaya Diagnostic Centre. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹1,075, 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 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Vijaya Diagnostic Centre 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.