Results: Clean Science and Technology Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Clean Science and Technology Limited (NSE:CLEAN) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of ₹1.9b were in line with what the analysts predicted, Clean Science and Technology surprised by delivering a statutory profit of ₹5.89 per share, modestly greater than expected. 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.

Check out our latest analysis for Clean Science and Technology

Following the latest results, Clean Science and Technology's nine analysts are now forecasting revenues of ₹10.5b in 2025. This would be a major 33% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 22% to ₹29.19. Before this earnings report, the analysts had been forecasting revenues of ₹10.9b and earnings per share (EPS) of ₹30.29 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹1,563 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Clean Science and Technology analyst has a price target of ₹1,805 per share, while the most pessimistic values it at ₹1,401. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Clean Science and Technology's growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 19% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. 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 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. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Clean Science and Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Clean Science and Technology analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Clean Science and Technology that 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.