Analysts Just Shipped A Sizeable Upgrade To Their Mahindra Lifespace Developers Limited (NSE:MAHLIFE) Estimates

Celebrations may be in order for Mahindra Lifespace Developers Limited (NSE:MAHLIFE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

After the upgrade, the seven analysts covering Mahindra Lifespace Developers are now predicting revenues of ₹7.0b in 2025. If met, this would reflect a huge 132% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 57% to ₹11.65. Prior to this update, the analysts had been forecasting revenues of ₹5.9b and earnings per share (EPS) of ₹8.89 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Mahindra Lifespace Developers

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹712, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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 208% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 7.2% 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 22% annually. So it looks like Mahindra Lifespace Developers is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Mahindra Lifespace Developers.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Mahindra Lifespace Developers 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 upgrading 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.

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