Results: Godrej Properties Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

A week ago, Godrej Properties Limited (NSE:GODREJPROP) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Statutory earnings performance was extremely strong, with revenue of ₹11b beating expectations by 51% and earnings per share (EPS) of ₹12.05, an impressive 78%ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See 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 major 23% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decline 12% to ₹43.99 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹44.0b and earnings per share (EPS) of ₹42.58 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of ₹3,304, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 ₹4,200 per share, while the most pessimistic values it at ₹2,113. 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. It's clear from the latest estimates that Godrej Properties' rate of growth is expected to accelerate meaningfully, with the forecast 52% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% 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 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. 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 ₹3,304, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Godrej Properties. Long-term earnings power is much more important than next year's profits. We have forecasts for Godrej Properties going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Godrej Properties (of which 1 doesn't sit too well with us!) you should know about.

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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.