CLEAN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Clean Science and Technology Ltd (CLEAN) Fundamental Rating: 3.5

📈 Core Financials Review

Profitability

EPS: ₹25.3 ➜ solid, but trailing sector heavyweights

PAT slightly down: ₹74.1 Cr → ₹70.1 Cr ➜ QoQ dip of ~6.26%

Returns

ROE: 20.2% | ROCE: 27.2% ➜ very strong capital deployment efficiency

Leverage Profile

Debt-to-equity: 0.00 ➜ zero debt—excellent financial hygiene

Dividend

Yield at 0.40% ➜ modest, in line with niche chemical players

💸 Valuation Metrics

Metric Value Commentary

P/E Ratio 49.0 Significantly above industry avg (34.4)

P/B Ratio ~9.31 (1,238 ₹ / 133 ₹) ➜ pricey relative to book

PEG Ratio 9.82 Overvalued — earnings growth not matching price

🔍 Verdict: Current valuation is stretched, suggesting caution. PEG near double digits implies growth is richly priced.

🧪 Business Model & Competitive Edge

Specialty chemicals innovator focused on performance chemicals, intermediates, and green chemistry

Moat built around

Patented processes

Zero waste emissions and environmentally forward manufacturing

Strong R&D ecosystem enabling margin expansion

📊 Institutional Sentiment

FII/DII both slightly ↑ ➜ mild accumulation despite valuation concerns

📉 Technical Landscape

RSI: 28.7 ➜ heavily oversold—potential technical bounce brewing

MACD: -51.2 ➜ deep negative momentum

Price well below both DMA50 & DMA200 ➜ bearish near-term setup

📌 Suggested Entry Zone: ₹1,100–₹1,160 🔍 Ideal for accumulation during sharp declines only if fundamentals justify

🕰️ Long-Term Investment View

Best suited for patient investors focused on

ESG-driven portfolios

Long-term specialty chemicals demand cycle

Preference for debt-free, high-margin companies

⚠️ However, the high PEG and price multiples suggest market optimism is already priced in. Re-rating may require new growth catalysts or margin upside.

Want to explore its peers like Fine Organics or Vinati Organics next? I can pull together a sector screener for you and highlight hidden gems.

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