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Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
Last week saw the newest quarterly earnings release from Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP), an important milestone in the company's journey to build a stronger business. Apollo Hospitals Enterprise reported ₹76b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹43.79 beat expectations, being 2.6% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Apollo Hospitals Enterprise's 29 analysts is for revenues of ₹298.9b in 2027. This would reflect a reasonable 7.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 11% to ₹173. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹298.9b and earnings per share (EPS) of ₹173 in 2027. 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.
See our latest analysis for Apollo Hospitals Enterprise
The analysts reconfirmed their price target of ₹9,802, showing that the business is executing well and in line with expectations. 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 Apollo Hospitals Enterprise at ₹10,800 per share, while the most bearish prices it at ₹6,230. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 18% annually. So it's pretty clear that Apollo Hospitals Enterprise is expected to grow slower than similar companies in the same 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Apollo Hospitals Enterprise going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether Apollo Hospitals Enterprise's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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