Oberoi Realty Limited Just Beat Revenue Estimates By 25%

Oberoi Realty Limited (NSE:OBEROIRLTY) just released its latest quarterly results and things are looking bullish. Revenue of ₹14b beat expectations by 25% and statutory earnings per share (EPS) of ₹16.08 exceeded forecasts by 11%. 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.

View our latest analysis for Oberoi Realty

Following the latest results, Oberoi Realty's 22 analysts are now forecasting revenues of ₹59.8b in 2025. This would be a meaningful 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.1% to ₹62.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹57.3b and earnings per share (EPS) of ₹61.83 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

The consensus price target increased 9.4% to ₹1,651, with an improved revenue forecast carrying the promise of a more valuable business, in time. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Oberoi Realty, with the most bullish analyst valuing it at ₹2,107 and the most bearish at ₹1,155 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Oberoi Realty shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Oberoi Realty's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 21% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Oberoi Realty is expected to grow much faster than its industry.

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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Oberoi Realty analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Oberoi Realty that you need to take into consideration.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com