Mahindra Lifespace Developers Limited Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

It's been a good week for Mahindra Lifespace Developers Limited (NSE:MAHLIFE) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.4% to ₹408. Revenues came in 61% better than analyst models predicted, at ₹1.7b. The company was unable to deliver a profit however, with statutory losses of ₹1.45 well below the profits that the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Mahindra Lifespace Developers

Taking into account the latest results, the current consensus from Mahindra Lifespace Developers' seven analysts is for revenues of ₹10.0b in 2026. This would reflect a substantial 154% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 310% to ₹12.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹11.0b and earnings per share (EPS) of ₹14.97 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.1% to ₹599. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Mahindra Lifespace Developers at ₹699 per share, while the most bearish prices it at ₹529. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Mahindra Lifespace Developers is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the 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 111% annualised growth until the end of 2026. If achieved, this would be a much better result than the 2.5% annual decline 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 24% 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 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. They also downgraded Mahindra Lifespace Developers' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Mahindra Lifespace Developers 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 Mahindra Lifespace Developers 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.