Prestige Estates Projects Limited Just Recorded A 56% EPS Beat: Here's What Analysts Are Forecasting Next

Prestige Estates Projects Limited (NSE:PRESTIGE) just released its second-quarter report and things are looking bullish. The company beat forecasts, with revenue of ₹23b, some 5.3% above estimates, and statutory earnings per share (EPS) coming in at ₹4.70, 56% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Prestige Estates Projects after the latest results.

View our latest analysis for Prestige Estates Projects

Taking into account the latest results, the most recent consensus for Prestige Estates Projects from 15 analysts is for revenues of ₹105.5b in 2025. If met, it would imply a sizeable 30% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 47% to ₹23.22. In the lead-up to this report, the analysts had been modelling revenues of ₹110.5b and earnings per share (EPS) of ₹22.40 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

There's been no real change to the average price target of ₹1,884, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. The most optimistic Prestige Estates Projects analyst has a price target of ₹2,380 per share, while the most pessimistic values it at ₹1,330. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's clear from the latest estimates that Prestige Estates Projects' rate of growth is expected to accelerate meaningfully, with the forecast 68% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.5% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Prestige Estates Projects is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Prestige Estates Projects following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Prestige Estates Projects going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Prestige Estates Projects 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.