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Analysts Just Shaved Their Mahindra Lifespace Developers Limited (NSE:MAHLIFE) Forecasts Dramatically
One thing we could say about the analysts on Mahindra Lifespace Developers Limited (NSE:MAHLIFE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
After the downgrade, the seven analysts covering Mahindra Lifespace Developers are now predicting revenues of ₹9.5b in 2026. If met, this would reflect a sizeable 152% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 232% to ₹10.20. Previously, the analysts had been modelling revenues of ₹11b and earnings per share (EPS) of ₹14.97 in 2026. Indeed, we can see that the analysts are a lot more bearish about Mahindra Lifespace Developers' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Mahindra Lifespace Developers
The consensus price target fell 6.0% to ₹599, with the weaker earnings outlook clearly leading analyst valuation estimates.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Mahindra Lifespace Developers' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 109% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 3.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 23% per year. So it looks like Mahindra Lifespace Developers is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Mahindra Lifespace Developers. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Mahindra Lifespace Developers.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Mahindra Lifespace Developers analysts - going out to 2027, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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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.
About NSEI:MAHLIFE
Mahindra Lifespace Developers
Engages in the real estate and infrastructure development business in India.
High growth potential with proven track record.