Earnings Update: Here's Why Analysts Just Lifted Their Landmark Cars Limited (NSE:LANDMARK) Price Target To ₹730

It's been a good week for Landmark Cars Limited (NSE:LANDMARK) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.3% to ₹530. Results overall were respectable, with statutory earnings of ₹3.85 per share roughly in line with what the analysts had forecast. Revenues of ₹11b came in 3.1% ahead of analyst predictions. 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.

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After the latest results, the three analysts covering Landmark Cars are now predicting revenues of ₹48.7b in 2026. If met, this would reflect a decent 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 272% to ₹17.70. In the lead-up to this report, the analysts had been modelling revenues of ₹47.5b and earnings per share (EPS) of ₹24.23 in 2026. While next year's revenue estimates increased, there was also a large cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

View our latest analysis for Landmark Cars

Curiously, the consensus price target rose 5.8% to ₹730. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. 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. There are some variant perceptions on Landmark Cars, with the most bullish analyst valuing it at ₹940 and the most bearish at ₹510 per share. 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.

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 clear from the latest estimates that Landmark Cars' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 9.0% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Landmark Cars is expected to grow at about the same rate as 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 upgraded their revenue forecasts, although the latest estimates suggest that Landmark Cars will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Landmark Cars. Long-term earnings power is much more important than next year's profits. We have forecasts for Landmark Cars going out to 2028, 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 Landmark Cars (1 doesn't sit too well with us!) that we have uncovered.

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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.