CLEAN - Investment Analysis

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

Investment Rating: 3.1

⚡ Fundamental Analysis: Clean Science & Technology Ltd. (CLEAN)

Clean Science is a niche specialty chemicals company with impressive capital efficiency and zero debt, but its current valuation and growth metrics raise caution for long-term investors.

Metric Value Implication

Market Cap ₹13,163 Cr Mid-cap; potential for growth but higher volatility

Stock P/E 49.0 Significantly overvalued vs. industry PE of 34.4

PEG Ratio 9.82 Extremely high; growth not justifying valuation

ROE / ROCE 20.2% / 27.2% Excellent profitability and capital efficiency

Dividend Yield 0.40% Low; not attractive for income investors

Debt-to-Equity 0.00 Zero debt; strong financial health

EPS ₹25.3 Decent earnings base

Qtr Profit Var +6.26% Slowing growth momentum

FII/DII Holding Change +0.14% / +0.15% Mild institutional interest

📉 Technical Analysis

Current Price: ₹1,238

DMA 50 / DMA 200: ₹1,377 / ₹1,370 → Trading below both; bearish trend

RSI: 28.7 → Deep oversold zone; potential for technical bounce

MACD: -51.2 → Strong bearish momentum

Volume: Below average; weak participation

💰 Ideal Entry Price Zone

Given the overvaluation and technical weakness

Ideal Entry Zone: ₹1,100–₹1,180

This range aligns with support levels and offers better risk-reward

Avoid entry above ₹1,300 unless earnings growth reaccelerates

🌱 Long-Term Investment Outlook

Why it’s a mixed candidate

ROCE and ROE are excellent — strong operational efficiency

Zero debt — financial resilience

Niche product portfolio in green chemistry — long-term thematic appeal

Concerns

PEG ratio of 9.82 — valuation far exceeds growth

P/E of 49 — premium pricing not backed by recent profit growth

RSI and MACD suggest short-term weakness

Qtr profit growth slowing — only +6.26%

🏁 Exit Strategy / Holding Period

If you already hold CLEAN

Holding Period: 1–2 years unless growth reaccelerates

Exit Strategy

Consider trimming near ₹1,400–₹1,500 if technicals improve but valuation remains stretched

Hold only if ROCE stays above 25% and PEG drops below 2

Reassess if profit growth continues to slow or valuation remains disconnected from fundamentals

Would you like a comparison with other specialty chemical stocks like Fine Organic or Navin Fluorine to evaluate better long-term picks in the sector?

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