Landmark Cars Limited Just Beat Revenue By 21%: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for Landmark Cars Limited (NSE:LANDMARK) shares in the week since its quarterly report, with the stock down 11% to ₹453. Revenue of ₹12b came in a notable 21% ahead of expectations, while statutory earnings of ₹13.77 were in line with what the analysts had been forecasting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Landmark Cars

Following the latest results, Landmark Cars' three analysts are now forecasting revenues of ₹46.4b in 2026. This would be a major 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 374% to ₹28.73. Before this earnings report, the analysts had been forecasting revenues of ₹46.5b and earnings per share (EPS) of ₹32.55 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The average price target fell 11% to ₹730, with reduced earnings forecasts clearly tied to a lower valuation estimate. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Landmark Cars at ₹941 per share, while the most bearish prices it at ₹600. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Landmark Cars' past performance and to peers in the same industry. It's clear from the latest estimates that Landmark Cars' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. So it's clear that despite the acceleration in growth, Landmark Cars is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Landmark Cars. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Landmark Cars analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Landmark Cars (at least 1 which is concerning) , and understanding these should be part of your investment process.

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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.