CLEAN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | CLEAN | Market Cap | 8,011 Cr. | Current Price | 754 ₹ | High / Low | 1,600 ₹ |
| Stock P/E | 31.9 | Book Value | 155 ₹ | Dividend Yield | 0.79 % | ROCE | 21.6 % |
| ROE | 16.2 % | Face Value | 1.00 ₹ | DMA 50 | 781 ₹ | DMA 200 | 917 ₹ |
| Chg in FII Hold | 3.37 % | Chg in DII Hold | -2.62 % | PAT Qtr | 58.1 Cr. | PAT Prev Qtr | 51.9 Cr. |
| RSI | 44.3 | MACD | 0.74 | Volume | 1,23,962 | Avg Vol 1Wk | 1,91,354 |
| Low price | 652 ₹ | High price | 1,600 ₹ | PEG Ratio | -5.22 | Debt to equity | 0.00 |
| 52w Index | 10.7 % | Qtr Profit Var | -26.1 % | EPS | 23.6 ₹ | Industry PE | 29.2 |
📊 Financials: CLEAN has a market cap of 8,011 Cr. with quarterly PAT at 58.1 Cr., up from 51.9 Cr. (+26.1%). ROE at 16.2% and ROCE at 21.6% reflect solid efficiency and profitability. Debt-to-equity at 0.00 highlights a debt-free balance sheet. EPS of 23.6 ₹ supports earnings visibility, though profit growth remains modest.
💹 Valuation: The stock trades at a P/E of 31.9, slightly above the industry average of 29.2, suggesting premium valuation. P/B ratio is ~4.9 (754/155), reflecting expensive pricing. PEG ratio of -5.22 highlights weak growth prospects relative to valuation. Intrinsic value appears lower than current price, limiting margin of safety.
🏢 Business Model: CLEAN operates in renewable energy and related services, benefiting from rising demand for sustainable solutions. Its competitive advantage lies in debt-free operations, strong ROCE, and growing institutional interest. However, earnings remain sensitive to project execution and sector cycles.
📈 Entry Zone: With RSI at 44.3 (neutral to slightly oversold), MACD positive, and price below DMA 50 and 200, accumulation around 720–750 ₹ looks favorable. Long-term holding is justified given debt-free status and efficiency, but investors should be cautious of valuation premiums and profit volatility.
Positive
- 📌 Debt-free balance sheet (Debt-to-equity 0.00).
- 📌 ROCE of 21.6% and ROE of 16.2% reflect strong efficiency.
- 📌 EPS of 23.6 ₹ supports earnings visibility.
- 📌 Increase in FII holdings (+3.37%) shows foreign investor confidence.
Limitation
- ⚠️ P/E of 31.9 is above industry average (29.2).
- ⚠️ P/B ratio of ~4.9 indicates expensive valuation.
- ⚠️ PEG ratio of -5.22 highlights weak growth prospects.
- ⚠️ Dividend yield of 0.79% is modest.
Company Negative News
- ❌ Decline in DII holdings (-2.62%) indicates reduced domestic institutional support.
Company Positive News
- ✅ Increase in FII holdings (+3.37%) shows strong foreign investor interest.
- ✅ Debt-free operations and strong ROCE metrics.
Industry
- 🏦 Renewable energy sector benefits from government support and rising demand for sustainability.
- 🏦 Industry P/E at 29.2 suggests CLEAN trades at a slight premium.
Conclusion
🔑 CLEAN is fundamentally stable with debt-free operations, strong ROCE, and growing foreign investor confidence. However, valuations are stretched with high P/E, P/B, and negative PEG ratio. Long-term investors may consider entry around 720–750 ₹ for better risk-reward balance. The company remains a resilient player in the renewable energy sector but requires monitoring of profit growth and valuation levels.
For deeper insights, you could explore a peer comparison or a renewable energy outlook to see how CLEAN stacks up against competitors.