Landmark Cars Limited Just Missed Revenue By 7.0%: Here's What Analysts Think Will Happen Next
Shareholders might have noticed that Landmark Cars Limited (NSE:LANDMARK) filed its quarterly result this time last week. The early response was not positive, with shares down 2.7% to ₹532 in the past week. Revenues came in 7.0% below expectations, at ₹13b. Statutory earnings per share were relatively better off, with a per-share profit of ₹9.01 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Landmark Cars' three analysts is for revenues of ₹58.4b in 2027. This reflects a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 96% to ₹21.23. Before this earnings report, the analysts had been forecasting revenues of ₹56.6b and earnings per share (EPS) of ₹20.40 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Check out our latest analysis for Landmark Cars
It will come as no surprise to learn that the analysts have increased their price target for Landmark Cars 7.9% to ₹643on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Landmark Cars at ₹735 per share, while the most bearish prices it at ₹580. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Landmark Cars is an easy business to forecast or the the analysts are all using similar assumptions.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 17% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. So although Landmark Cars is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Landmark Cars' earnings potential next year. 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.
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 forecasts for Landmark Cars going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Landmark Cars you should be aware of, and 1 of them makes us a bit uncomfortable.
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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.