Keystone Realtors Limited Recorded A 33% Miss On Revenue: Analysts Are Revisiting Their Models

Explore Keystone Realtors's Fair Values from the Community and select yours

Keystone Realtors Limited (NSE:RUSTOMJEE) shareholders are probably feeling a little disappointed, since its shares fell 5.1% to ₹590 in the week after its latest first-quarter results. Revenues were ₹2.7b, 33% shy of what the analysts were expecting, although statutory earnings of ₹13.71 per share were roughly in line with what was 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Keystone Realtors' three analysts is for revenues of ₹24.6b in 2026. This would reflect a substantial 33% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 43% to ₹18.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹24.4b and earnings per share (EPS) of ₹25.57 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

Check out our latest analysis for Keystone Realtors

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹867, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Keystone Realtors at ₹875 per share, while the most bearish prices it at ₹855. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Keystone Realtors' growth to accelerate, with the forecast 46% annualised growth to the end of 2026 ranking favourably alongside historical growth of 32% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 22% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Keystone Realtors is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Keystone Realtors. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Keystone Realtors analysts - going out to 2028, and you can see them free on our platform here.

It might also be worth considering whether Keystone Realtors' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.