Results: DLF Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

DLF Limited (NSE:DLF) just released its second-quarter report and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of ₹20b beating expectations by 41% and earnings per share (EPS) of ₹5.58, an impressive 73%ahead of 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.

View our latest analysis for DLF

Taking into account the latest results, the current consensus from DLF's 18 analysts is for revenues of ₹74.7b in 2025. This would reflect a reasonable 6.7% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹14.28, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹74.3b and earnings per share (EPS) of ₹13.98 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at ₹947, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on DLF, with the most bullish analyst valuing it at ₹1,081 and the most bearish at ₹750 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 DLF's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 14% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.1% 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 23% annually for the foreseeable future. So although DLF's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards DLF following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that DLF's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹947, 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. At Simply Wall St, we have a full range of analyst estimates for DLF going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for DLF 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.