Revenue Miss: Godrej Properties Limited Fell 52% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models
As you might know, Godrej Properties Limited (NSE:GODREJPROP) last week released its latest first-quarter, and things did not turn out so great for shareholders. Godrej Properties delivered a grave earnings miss, with both revenues (₹5.1b) and statutory earnings per share (₹11.62) falling badly short of analyst expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the 20 analysts covering Godrej Properties are now predicting revenues of ₹85.6b in 2027. If met, this would reflect a substantial 65% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 39% to ₹74.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹84.0b and earnings per share (EPS) of ₹78.07 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for Godrej Properties
The consensus price target held steady at ₹2,311, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Godrej Properties analyst has a price target of ₹3,000 per share, while the most pessimistic values it at ₹1,525. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. It's clear from the latest estimates that Godrej Properties' rate of growth is expected to accelerate meaningfully, with the forecast 94% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 29% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Godrej Properties is expected to grow much faster than its industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹2,311, with the latest estimates not enough to have an impact on their price targets.
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 Godrej Properties 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 - Godrej Properties has 2 warning signs we think you should be aware of.
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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.