Vijaya Diagnostic Centre Limited (NSE:VIJAYA) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Vijaya Diagnostic Centre Limited (NSE:VIJAYA) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Vijaya Diagnostic Centre reported in line with analyst predictions, delivering revenues of ₹1.3b and statutory earnings per share of ₹8.26, suggesting the business is executing well and in line with its plan. 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 Vijaya Diagnostic Centre after the latest results.

Check out our latest analysis for Vijaya Diagnostic Centre

Following the latest results, Vijaya Diagnostic Centre's four analysts are now forecasting revenues of ₹6.53b in 2025. This would be a huge 27% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 29% to ₹14.23. In the lead-up to this report, the analysts had been modelling revenues of ₹6.27b and earnings per share (EPS) of ₹14.40 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹646, implying that the uplift in revenue is not expected to greatly contribute to Vijaya Diagnostic Centre's valuation in the near term. 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. The most optimistic Vijaya Diagnostic Centre analyst has a price target of ₹755 per share, while the most pessimistic values it at ₹440. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vijaya Diagnostic Centre's past performance and to peers in the same industry. The analysts are definitely expecting Vijaya Diagnostic Centre's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vijaya Diagnostic Centre is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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 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. At Simply Wall St, we have a full range of analyst estimates for Vijaya Diagnostic Centre going out to 2026, 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.