CLEAN - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials

Earnings Strength: EPS of ₹27.9 and PAT of ₹76.6 Cr (slightly down from ₹78.6 Cr) show stable profitability with a modest 6.11% quarterly variation.

Return Metrics: ROCE at 29.3% and ROE at 21.9% are excellent, reflecting strong capital efficiency and shareholder value creation.

Debt Profile: Debt-to-equity of 0.00 — completely debt-free, which enhances financial resilience and cash flow flexibility.

Cash Flow: While not explicitly stated, the combination of zero debt and consistent earnings implies robust operating cash flows.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 42.6 Expensive vs. industry PE (33.9)

P/B Ratio ~8.69 High premium over book value

PEG Ratio 4.99 Overvalued relative to growth

Dividend Yield 0.50% Modest, not a major income play

Valuation is stretched, especially given the elevated PEG ratio and premium over book value.

🧪 Business Model & Competitive Advantage

Clean Science and Technology Ltd. operates in the specialty chemicals segment, focusing on green chemistry and sustainable manufacturing. Its strengths include

Proprietary processes with zero liquid discharge

High-margin niche products like anisole, MEHQ, and BHA

Strong export footprint and customer stickiness

Zero debt and high return ratios

The company is positioned as a quality mid-cap with strong fundamentals, though current valuation reflects high investor expectations

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📈 Technical & Sentiment Indicators

RSI: 51.4 – Neutral zone, no strong momentum.

MACD: -12.0 – Bearish crossover, short-term weakness.

Volume Dip – Below weekly average, suggesting reduced interest.

DMA 50 & 200: Current price is below both, indicating technical softness.

💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹1,100–₹1,150, closer to support and below DMA 50.

Current Price ₹1,190: Slightly above ideal entry, but not excessive.

🕰️ Long-Term Holding

Hold or Accumulate on Dips: Strong ROE/ROCE, zero debt, and niche positioning make it a solid long-term play.

Monitor Valuation & Growth: Elevated PEG ratio suggests limited upside unless earnings accelerate.

For future price targets and technical levels, you can explore Clean Science’s 2025–2026 forecast or its share price action analysis

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. Let me know if you'd like a peer comparison with Fine Organics or Aarti Industries.

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www.stocks-buy.com

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stockpricearchive.com

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