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Dr. Agarwal's Health Care Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Dr. Agarwal's Health Care Limited (NSE:AGARWALEYE) just released its second-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.8% to hit ₹6.6b. Dr. Agarwal's Health Care also reported a statutory profit of ₹1.64, which was an impressive 26% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Dr. Agarwal's Health Care's six analysts are now forecasting revenues of ₹25.5b in 2027. This would be a decent 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 10% to ₹5.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹25.5b and earnings per share (EPS) of ₹5.91 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Dr. Agarwal's Health Care
The analysts reconfirmed their price target of ₹585, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Dr. Agarwal's Health Care at ₹622 per share, while the most bearish prices it at ₹555. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dr. Agarwal's Health Care's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Dr. Agarwal's Health Care's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% annually. Factoring in the forecast slowdown in growth, it looks like Dr. Agarwal's Health Care is forecast to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹585, with the latest estimates not enough to have an impact on their price targets.
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 Dr. Agarwal's Health Care analysts - going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether Dr. Agarwal's Health Care's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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