CLEAN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CLEAN | Market Cap | 8,590 Cr. | Current Price | 808 ₹ | High / Low | 1,600 ₹ |
| Stock P/E | 31.6 | Book Value | 146 ₹ | Dividend Yield | 0.74 % | ROCE | 29.3 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 894 ₹ | DMA 200 | 1,085 ₹ |
| Chg in FII Hold | -1.13 % | Chg in DII Hold | 0.79 % | PAT Qtr | 51.9 Cr. | PAT Prev Qtr | 64.6 Cr. |
| RSI | 31.7 | MACD | -13.2 | Volume | 7,38,419 | Avg Vol 1Wk | 3,95,194 |
| Low price | 801 ₹ | High price | 1,600 ₹ | PEG Ratio | 3.70 | Debt to equity | 0.00 |
| 52w Index | 0.88 % | Qtr Profit Var | -30.0 % | EPS | 25.6 ₹ | Industry PE | 26.3 |
📊 Financials: Clean Science and Technology Ltd. has reported PAT of 51.9 Cr compared to 64.6 Cr previously, reflecting a -30% quarterly profit variation. ROE at 21.9% and ROCE at 29.3% highlight strong efficiency. Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, strengthening financial stability. EPS of 25.6 ₹ supports earnings visibility, though profit momentum has weakened.
💹 Valuation: Current P/E of 31.6 is above the industry average (26.3), suggesting premium valuation. P/B ratio ~5.53 (Price 808 ₹ / Book Value 146 ₹) is expensive relative to book value. PEG ratio of 3.70 indicates stretched valuation compared to growth. Dividend yield of 0.74% provides modest income support. Intrinsic value appears lower than current price, reflecting overvaluation.
🏢 Business Model: Clean Science operates in specialty chemicals, focusing on green chemistry and sustainable manufacturing processes. Competitive advantage lies in niche product portfolio, strong R&D, and global customer base. The company benefits from rising demand for eco-friendly chemicals and exports.
📈 Entry Zone: Attractive accumulation zone between 780–800 ₹, near its 52-week low (801 ₹) and below DMA200 (1,085 ₹). RSI at 31.7 indicates oversold conditions, while MACD (-13.2) suggests bearish momentum. Long-term investors can accumulate cautiously at lower levels.
🔒 Holding Guidance: Fundamentally strong with debt-free operations and high efficiency metrics. However, valuations are stretched and profit momentum has slowed. Suitable for long-term holding only if accumulated near support levels for margin of safety.
Positive
- Debt-free balance sheet enhances financial resilience.
- Strong ROE (21.9%) and ROCE (29.3%) highlight efficiency.
- Niche positioning in specialty chemicals with global demand.
- DII holdings increased (+0.79%), reflecting domestic confidence.
Limitation
- Quarterly PAT decline (-30%) raises caution on earnings momentum.
- High P/E (31.6) compared to industry average (26.3).
- P/B ratio of 5.53 indicates expensive valuation.
- PEG ratio of 3.70 highlights stretched valuation relative to growth.
- FII holdings decreased (-1.13%), showing foreign caution.
Company Negative News
- No major negative news reported, but profit decline and reduced FII holdings raise caution.
Company Positive News
- Debt-free operations strengthen balance sheet stability.
- Strong efficiency metrics with high ROE and ROCE.
- Global demand for eco-friendly specialty chemicals supports long-term growth.
Industry
- Specialty chemicals sector benefits from rising global demand and sustainability trends.
- Industry P/E at 26.3 suggests moderate optimism.
- Export-driven demand provides long-term growth opportunities.
Conclusion
✅ Clean Science and Technology Ltd. is financially strong, debt-free, and efficient with niche positioning in specialty chemicals. However, valuations are stretched and profit momentum has slowed. Long-term investors may accumulate near 780–800 ₹ for margin of safety, while monitoring earnings growth and global demand trends.
I can also extend this with a peer comparison against Aarti Industries, Navin Fluorine, and SRF to highlight Clean Science’s relative valuation and efficiency. Would you like me to add that?