Oberoi Realty Limited (NSE:OBEROIRLTY) Fell Short of Analyst Expectations: Here's What You Need To Know

The analysts might have been a bit too bullish on Oberoi Realty Limited (NSE:OBEROIRLTY), given that the company fell short of expectations when it released its first-quarter results last week. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of ₹13b missed by 11%, and statutory earnings per share of ₹14.94 fell short of forecasts by 11%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the consensus forecast from Oberoi Realty's 24 analysts is for revenues of ₹74.1b in 2027. This reflects a meaningful 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to ₹82.31. Before this earnings report, the analysts had been forecasting revenues of ₹77.0b and earnings per share (EPS) of ₹88.14 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Check out our latest analysis for Oberoi Realty

The analysts made no major changes to their price target of ₹1,911, suggesting the downgrades are not expected to have a long-term impact on Oberoi Realty's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Oberoi Realty, with the most bullish analyst valuing it at ₹2,490 and the most bearish at ₹1,085 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Oberoi Realty's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 17% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 21% per year. Oberoi Realty is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹1,911, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Oberoi Realty analysts - going out to 2029, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Oberoi Realty that you should be aware of.

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.