Mahindra Lifespace Developers Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Mahindra Lifespace Developers Limited (NSE:MAHLIFE) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.0% to ₹610. Revenues of 21% beat expectations by ₹1.9b and was sufficient to generate a statutory profit of ₹0.82 - a pleasant surprise given that the analysts were forecasting a loss! 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Mahindra Lifespace Developers

Taking into account the latest results, the most recent consensus for Mahindra Lifespace Developers from seven analysts is for revenues of ₹7.80b in 2025. If met, it would imply a sizeable 158% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 56% to ₹11.60. In the lead-up to this report, the analysts had been modelling revenues of ₹5.88b and earnings per share (EPS) of ₹8.89 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹715, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Mahindra Lifespace Developers analyst has a price target of ₹785 per share, while the most pessimistic values it at ₹600. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mahindra Lifespace Developers' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Mahindra Lifespace Developers is forecast to grow faster in the future than it has in the past, with revenues expected to display 254% annualised growth until the end of 2025. If achieved, this would be a much better result than the 7.2% annual decline 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. Not only are Mahindra Lifespace Developers' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mahindra Lifespace Developers 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. The consensus price target held steady at ₹715, 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 Mahindra Lifespace Developers. Long-term earnings power is much more important than next year's profits. We have forecasts for Mahindra Lifespace Developers going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Mahindra Lifespace Developers .

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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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