Investors in Landmark Cars Limited (NSE:LANDMARK) had a good week, as its shares rose 2.1% to close at ₹476 following the release of its second-quarter results. Revenues were ₹15b, 10% below analyst expectations, although losses didn’t appear to worsen significantly, with a per-share statutory loss of ₹9.01 being in line with what the analysts forecast. 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’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Landmark Cars’ four analysts are now forecasting revenues of ₹58.1b in 2027. This would be a meaningful 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 22% to ₹18.30. Before this earnings report, the analysts had been forecasting revenues of ₹57.4b and earnings per share (EPS) of ₹18.65 in 2027. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
See our latest analysis for Landmark Cars
The analysts reconfirmed their price target of ₹666, showing that the business is executing well and in line with expectations. 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 ₹800 per share, while the most bearish prices it at ₹550. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 19% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. 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 most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹666, with the latest estimates not enough to have an impact on their price targets.
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. At Simply Wall St, we have a full range of analyst estimates for Landmark Cars going out to 2029, and you can see them free on our platform here..
However, before you get too enthused, we’ve discovered 2 warning signs for Landmark Cars (1 is potentially serious!) that you should be aware of.
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