Analysts Are More Bearish On Neogen Chemicals Limited (NSE:NEOGEN) Than They Used To Be

One thing we could say about the analysts on Neogen Chemicals Limited (NSE:NEOGEN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

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After the downgrade, the six analysts covering Neogen Chemicals are now predicting revenues of ₹8.5b in 2026. If met, this would reflect a credible 6.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 63% to ₹14.95. Previously, the analysts had been modelling revenues of ₹10b and earnings per share (EPS) of ₹21.25 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Neogen Chemicals

The consensus price target fell 11% to ₹1,807, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. We would highlight that Neogen Chemicals' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Compare this to the 354 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while Neogen Chemicals' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Neogen Chemicals' business, like its declining profit margins. Learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

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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.