Clean Science and Technology Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Clean Science and Technology Limited (NSE:CLEAN) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.5% to ₹1,480 in the past week. Revenues were in line with forecasts, at ₹2.4b, although statutory earnings per share came in 18% below what the analysts expected, at ₹5.53 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Clean Science and Technology after the latest results.

See our latest analysis for Clean Science and Technology

Following the latest results, Clean Science and Technology's ten analysts are now forecasting revenues of ₹9.72b in 2025. This would be a meaningful 9.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 8.7% to ₹26.34. In the lead-up to this report, the analysts had been modelling revenues of ₹10.4b and earnings per share (EPS) of ₹28.71 in 2025. 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.

Despite the cuts to forecast earnings, there was no real change to the ₹1,561 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. The most optimistic Clean Science and Technology analyst has a price target of ₹1,760 per share, while the most pessimistic values it at ₹1,069. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Clean Science and Technology's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.3% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Clean Science and Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Clean Science and Technology. They also downgraded Clean Science and Technology's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,561, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Clean Science and Technology going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Clean Science and Technology (1 shouldn't be ignored) you should be aware of.

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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.