Godrej Properties Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Godrej Properties Limited (NSE:GODREJPROP) shareholders are probably feeling a little disappointed, since its shares fell 4.1% to ₹3,002 in the week after its latest quarterly results. Godrej Properties' revenues suffered a catastrophic miss, falling 32% short of forecasts, at ₹7.4b. Statutory earnings per share however performed much better, hitting ₹18.70, 158% above forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Godrej Properties

After the latest results, the 16 analysts covering Godrej Properties are now predicting revenues of ₹45.1b in 2025. If met, this would reflect a substantial 59% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to ₹45.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹43.5b and earnings per share (EPS) of ₹37.75 in 2025. So it seems there's been a definite increase in optimism about Godrej Properties' future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of ₹3,001, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Godrej Properties analyst has a price target of ₹4,000 per share, while the most pessimistic values it at ₹1,860. 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.

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 Godrej Properties' growth to accelerate, with the forecast 85% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Godrej Properties' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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.

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 Godrej Properties going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Godrej Properties (at least 1 which is concerning) , and understanding these should be part of your investment process.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com