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Aster DM Quality Care Limited (NSE:ASTERDM) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Investors in Aster DM Quality Care Limited (NSE:ASTERDM) had a good week, as its shares rose 8.9% to close at ₹734 following the release of its second-quarter results. It was a workmanlike result, with revenues of ₹28b coming in 3.2% ahead of expectations, and statutory earnings per share of ₹7.52, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the eleven analysts covering Aster DM Quality Care are now predicting revenues of ₹103.7b in 2027. If met, this would reflect a major 59% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 122% to ₹11.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹101.5b and earnings per share (EPS) of ₹15.38 in 2027. So it's pretty clear the analysts have mixed opinions on Aster DM Quality Care after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.
See our latest analysis for Aster DM Quality Care
The consensus price target was unchanged at ₹909, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Aster DM Quality Care, with the most bullish analyst valuing it at ₹1,070 and the most bearish at ₹850 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Aster DM Quality Care's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 154% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 20% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually. So it looks like Aster DM Quality Care is expected to grow faster than its competitors, at least for a while.
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. Happily, they also upgraded their revenue estimates, and are forecasting them 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Aster DM Quality Care analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Aster DM Quality Care that you need to take into consideration.
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