Results: Mahindra Lifespace Developers Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in Mahindra Lifespace Developers Limited (NSE:MAHLIFE) had a good week, as its shares rose 7.3% to close at ₹598 following the release of its third-quarter results. Mahindra Lifespace Developers' revenues suffered a catastrophic miss, falling 20% short of forecasts, at ₹820m. Statutory earnings per share however performed much better, hitting ₹3.22, 61% above forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Mahindra Lifespace Developers

Following the latest results, Mahindra Lifespace Developers' six analysts are now forecasting revenues of ₹10.3b in 2025. This would be a major 128% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 514% to ₹10.80. Before this earnings report, the analysts had been forecasting revenues of ₹10.5b and earnings per share (EPS) of ₹10.65 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹644, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Mahindra Lifespace Developers, with the most bullish analyst valuing it at ₹736 and the most bearish at ₹582 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. For example, we noticed that Mahindra Lifespace Developers' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 94% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 4.9% 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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹644, 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. At Simply Wall St, we have a full range of analyst estimates for Mahindra Lifespace Developers going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Mahindra Lifespace Developers has 3 warning signs we think you should be aware of.

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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.