Here's What Analysts Are Forecasting For Vijaya Diagnostic Centre Limited (NSE:VIJAYA) After Its Third-Quarter Results

Vijaya Diagnostic Centre Limited (NSE:VIJAYA) just released its latest third-quarter results and things are looking bullish. The company beat expectations with revenues of ₹2.1b arriving 4.7% ahead of forecasts. Statutory earnings per share (EPS) were ₹4.19, 2.8% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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.

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Taking into account the latest results, the consensus forecast from Vijaya Diagnostic Centre's nine analysts is for revenues of ₹9.46b in 2027. This reflects a sizeable 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 35% to ₹20.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹9.45b and earnings per share (EPS) of ₹21.09 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 Vijaya Diagnostic Centre

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,177. 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. There are some variant perceptions on Vijaya Diagnostic Centre, with the most bullish analyst valuing it at ₹1,300 and the most bearish at ₹950 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vijaya Diagnostic Centre is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Vijaya Diagnostic Centre's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 21% per year. Vijaya Diagnostic Centre is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Vijaya Diagnostic Centre going out to 2028, and you can see them free on our platform here..

It might also be worth considering whether Vijaya Diagnostic Centre's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.