CLEAN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CLEAN | Market Cap | 8,705 Cr. | Current Price | 819 ₹ | High / Low | 1,600 ₹ |
| Stock P/E | 32.0 | Book Value | 146 ₹ | Dividend Yield | 0.73 % | ROCE | 29.3 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 762 ₹ | DMA 200 | 933 ₹ |
| Chg in FII Hold | 3.37 % | Chg in DII Hold | -2.62 % | PAT Qtr | 51.9 Cr. | PAT Prev Qtr | 64.6 Cr. |
| RSI | 65.1 | MACD | 24.3 | Volume | 4,64,731 | Avg Vol 1Wk | 3,92,195 |
| Low price | 652 ₹ | High price | 1,600 ₹ | PEG Ratio | 3.75 | Debt to equity | 0.00 |
| 52w Index | 17.6 % | Qtr Profit Var | -30.0 % | EPS | 25.6 ₹ | Industry PE | 28.9 |
📊 Financials: CLEAN demonstrates strong efficiency with ROE at 21.9% and ROCE at 29.3%, supported by EPS of ₹25.6. Debt-to-equity is 0.00, highlighting a debt-free balance sheet. However, quarterly PAT declined from ₹64.6 Cr. to ₹51.9 Cr. (-30%), showing earnings weakness despite solid fundamentals.
💹 Valuation: The stock trades at a P/E of 32.0, above the industry average of 28.9, suggesting mild overvaluation. Book value of ₹146 results in a P/B of ~5.6, expensive relative to peers. PEG ratio of 3.75 indicates growth is priced in. Intrinsic value appears lower than current price, limiting margin of safety.
🏢 Business Model: CLEAN operates in industrial consumables, benefiting from manufacturing demand. Its competitive advantage lies in debt-free operations and strong efficiency ratios. Institutional sentiment is mixed, with FII holdings up (+3.37%) but DII holdings down (-2.62%).
🎯 Entry Zone: Safer entry between ₹750–780, near DMA support levels. Long-term investors may hold for 3–5 years, with exit considerations if ROE falls below 18% or earnings continue to decline.
Positive
- Strong ROCE (29.3%) and ROE (21.9%).
- Debt-free balance sheet ensures financial resilience.
- EPS of ₹25.6 supports earnings visibility.
- FII holdings increased (+3.37%), showing foreign investor confidence.
Limitation
- Quarterly PAT declined (-30%), showing earnings weakness.
- P/E of 32.0 above industry average (28.9), suggesting mild overvaluation.
- PEG ratio of 3.75 indicates growth is priced in.
- DII holdings decreased (-2.62%), showing reduced domestic confidence.
- Dividend yield modest at 0.73%.
Company Negative News
- Declining quarterly profits and reduced DII interest highlight cautious sentiment.
Company Positive News
- Debt-free status strengthens balance sheet.
- Strong efficiency ratios and increased FII holdings support investor confidence.
Industry
- Industrial consumables sector trades at industry P/E of 28.9.
- CLEAN’s P/E of 32.0 suggests premium valuation relative to peers.
Conclusion
✅ CLEAN is a fundamentally strong company with excellent efficiency and zero debt. However, declining profits and stretched valuations limit upside potential. Entry near ₹750–780 offers safety, while holding for 3–5 years could yield moderate returns if earnings growth stabilizes and institutional sentiment improves.