Vijaya Diagnostic Centre Limited (NSE:VIJAYA) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Vijaya Diagnostic Centre Limited (NSE:VIJAYA) had a good week, as its shares rose 3.5% to close at ₹1,024 following the release of its quarterly results. Revenues came in 2.5% below expectations, at ₹2.0b. Statutory earnings per share were relatively better off, with a per-share profit of ₹4.20 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the most recent consensus for Vijaya Diagnostic Centre from nine analysts is for revenues of ₹7.92b in 2026. If met, it would imply a satisfactory 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.5% to ₹16.13. In the lead-up to this report, the analysts had been modelling revenues of ₹8.00b and earnings per share (EPS) of ₹16.54 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Vijaya Diagnostic Centre

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 8.6% to ₹1,160, suggesting the revised estimates are not indicative of a weaker long-term future for the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Vijaya Diagnostic Centre at ₹1,329 per share, while the most bearish prices it at ₹1,000. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 15% annualised revenue growth to the end of 2026 is roughly in line with the 18% annual growth over the past three years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 19% annually. So it's pretty clear that Vijaya Diagnostic Centre is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Vijaya Diagnostic Centre's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Vijaya Diagnostic Centre going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Vijaya Diagnostic Centre Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.