Godrej Properties Limited Beat Revenue Forecasts By 15%: Here's What Analysts Are Forecasting Next

It's been a good week for Godrej Properties Limited (NSE:GODREJPROP) shareholders, because the company has just released its latest full-year results, and the shares gained 8.2% to ₹2,843. Results were mixed, with revenues of ₹30b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were ₹26.08 per share, -2.8% below whatthe analysts had 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Godrej Properties

Taking into account the latest results, the most recent consensus for Godrej Properties from 15 analysts is for revenues of ₹44.2b in 2025. If met, it would imply a substantial 46% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 39% to ₹36.29. Before this earnings report, the analysts had been forecasting revenues of ₹41.0b and earnings per share (EPS) of ₹37.11 in 2025. So it's pretty clear consensus is mixed on Godrej Properties after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

Curiously, the consensus price target rose 14% to ₹2,469. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. 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 Godrej Properties, with the most bullish analyst valuing it at ₹3,351 and the most bearish at ₹1,190 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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 46% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.0% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Godrej Properties to grow faster than the wider 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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

Before you take the next step you should know about the 2 warning signs for Godrej Properties (1 doesn't sit too well with us!) that we have uncovered.

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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.