Aster DM Quality Care Limited (NSE:ASTERDM) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹898
It's been a good week for Aster DM Quality Care Limited (NSE:ASTERDM) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.8% to ₹870. It was a workmanlike result, with revenues of ₹13b coming in 4.9% ahead of expectations, and statutory earnings per share of ₹7.52, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Aster DM Quality Care from ten analysts is for revenues of ₹100.1b in 2027. If met, it would imply a major 105% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 131% to ₹14.27. Before this earnings report, the analysts had been forecasting revenues of ₹105.0b and earnings per share (EPS) of ₹14.38 in 2027. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
View our latest analysis for Aster DM Quality Care
The consensus price target rose 9.4% to ₹898, with the analysts apparently satisfied with the business performance despite lower revenue forecasts. 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. The most optimistic Aster DM Quality Care analyst has a price target of ₹1,090 per share, while the most pessimistic values it at ₹743. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. One thing stands out from these estimates, which is that Aster DM Quality Care is forecast to grow faster in the future than it has in the past, with revenues expected to display 161% annualised growth until the end of 2027. If achieved, this would be a much better result than the 21% annual decline 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Aster DM Quality Care analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Aster DM Quality Care has 2 warning signs we think you should be aware of.
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