These Analysts Think Mahindra Lifespace Developers Limited's (NSE:MAHLIFE) Sales Are Under Threat

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. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the most recent consensus for Mahindra Lifespace Developers from its seven analysts is for revenues of ₹5.1b in 2025 which, if met, would be a huge 75% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing ₹7.0b of revenue in 2025. The consensus view seems to have become more pessimistic on Mahindra Lifespace Developers, noting the pretty serious reduction to revenue estimates in this update.

Check out our latest analysis for Mahindra Lifespace Developers

We'd point out that there was no major changes to their price target of ₹685, suggesting the latest estimates were not enough to shift their view on the value of the business.

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. 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 207% annualised growth until the end of 2025. If achieved, this would be a much better result than the 7.6% 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. 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 analysts cut their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Mahindra Lifespace Developers after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Mahindra Lifespace Developers, including concerns around earnings quality. For more information, you can click here to discover this and the 1 other warning sign we've identified.

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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