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Godrej Properties Limited Just Missed EPS By 69%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Godrej Properties Limited (NSE:GODREJPROP) released its quarterly result to the market. The early response was not positive, with shares down 4.0% to ₹1,525 in the past week. Revenue came in at ₹19b, beating expectations by a remarkable 126%, while statutory earnings per share (EPS) were ₹5.12, missing estimates by an equally remarkable 69%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Godrej Properties' 21 analysts is for revenues of ₹86.2b in 2027. This would reflect a substantial 35% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 62% to ₹72.40. In the lead-up to this report, the analysts had been modelling revenues of ₹86.7b and earnings per share (EPS) of ₹74.69 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
View our latest analysis for Godrej Properties
The average price target fell 5.5% to ₹2,208, 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 Godrej Properties at ₹3,000 per share, while the most bearish prices it at ₹1,325. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Godrej Properties' growth to accelerate, with the forecast 81% annualised growth to the end of 2027 ranking favourably alongside historical growth of 28% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 25% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Godrej Properties 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.
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. At Simply Wall St, we have a full range of analyst estimates for Godrej Properties going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 4 warning signs for Godrej Properties (1 can't be ignored!) that you need to take into consideration.
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