Results: Oberoi Realty Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders might have noticed that Oberoi Realty Limited (NSE:OBEROIRLTY) filed its quarterly result this time last week. The early response was not positive, with shares down 3.9% to ₹1,950 in the past week. Revenues ₹13b disappointed slightly, at2.3% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹16.21 coming in 12% above what was anticipated. 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 Oberoi Realty

Taking into account the latest results, the consensus forecast from Oberoi Realty's 20 analysts is for revenues of ₹61.9b in 2025. This reflects a huge 22% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹64.69, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹60.0b and earnings per share (EPS) of ₹62.62 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.5% to ₹1,904per share. 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 ₹2,403 and the most bearish at ₹1,175 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's clear from the latest estimates that Oberoi Realty's rate of growth is expected to accelerate meaningfully, with the forecast 48% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 22% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Oberoi Realty to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Oberoi Realty's earnings potential next year. 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.

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 estimates - from multiple Oberoi Realty analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Oberoi Realty is showing 1 warning sign in our investment analysis , you should know about...

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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.