Analysts Are Updating Their Brookfield India Real Estate Trust (NSE:BIRET) Estimates After Its First-Quarter Results

It's been a good week for Brookfield India Real Estate Trust (NSE:BIRET) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to ₹340. It was a workmanlike result, with revenues of ₹2.9b coming in 4.9% ahead of expectations, and statutory earnings per share of ₹1.41, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Brookfield India Real Estate Trust

After the latest results, the eight analysts covering Brookfield India Real Estate Trust are now predicting revenues of ₹12.4b in 2023. If met, this would reflect a major 27% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 40% to ₹9.16. In the lead-up to this report, the analysts had been modelling revenues of ₹12.8b and earnings per share (EPS) of ₹9.81 in 2023. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹327 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Brookfield India Real Estate Trust, with the most bullish analyst valuing it at ₹350 and the most bearish at ₹285 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Brookfield India Real Estate Trust's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 38% growth on an annualised basis. This is compared to a historical growth rate of 137% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.2% annually. Even after the forecast slowdown in growth, it seems obvious that Brookfield India Real Estate Trust is also expected to grow faster than the wider 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. They also downgraded their revenue estimates, although industry data suggests that Brookfield India Real Estate Trust's revenues are expected to grow faster than the wider industry. The consensus price target held steady at ₹327, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Brookfield India Real Estate Trust going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Brookfield India Real Estate Trust (1 is potentially serious!) that we have uncovered.

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

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.