CLEAN - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.7
| Stock Code | CLEAN | Market Cap | 8,759 Cr. | Current Price | 825 ₹ | High / Low | 1,600 ₹ |
| Stock P/E | 32.2 | Book Value | 146 ₹ | Dividend Yield | 0.73 % | ROCE | 29.3 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 767 ₹ | DMA 200 | 931 ₹ |
| Chg in FII Hold | 3.37 % | Chg in DII Hold | -2.62 % | PAT Qtr | 51.9 Cr. | PAT Prev Qtr | 64.6 Cr. |
| RSI | 66.2 | MACD | 26.2 | Volume | 2,31,608 | Avg Vol 1Wk | 3,62,544 |
| Low price | 652 ₹ | High price | 1,600 ₹ | PEG Ratio | 3.78 | Debt to equity | 0.00 |
| 52w Index | 18.2 % | Qtr Profit Var | -30.0 % | EPS | 25.6 ₹ | Industry PE | 29.0 |
📊 CLEAN trades at a P/E of 32.2, slightly above the industry average of 29.0, suggesting premium valuation. ROCE (29.3%) and ROE (21.9%) are strong, reflecting efficient capital use. The company is debt-free, which strengthens financial stability. However, the PEG ratio of 3.78 indicates overvaluation relative to growth. EPS of ₹25.6 is modest, and quarterly PAT declined (₹51.9 Cr vs ₹64.6 Cr), raising concerns about earnings consistency. Dividend yield of 0.73% provides limited income support.
💡 Ideal Entry Price Zone: ₹750 – ₹780, close to DMA 50 (₹767) and below DMA 200 (₹931), offering a margin of safety.
📈 Exit Strategy / Holding Period: For existing holders, a medium- to long-term horizon (3–5 years) is reasonable given strong ROE and ROCE. Consider partial profit booking near ₹1,550–₹1,600 resistance. Long-term investors should monitor profit trends and valuation multiples closely before committing to extended holding periods.
✅ Positive
- Strong ROCE (29.3%) and ROE (21.9%).
- Debt-free balance sheet reduces financial risk.
- EPS of ₹25.6 supports earnings visibility.
- FII holdings increased (+3.37%), showing foreign investor confidence.
⚠️ Limitation
- P/E of 32.2 is above industry average (29.0).
- PEG ratio of 3.78 suggests overvaluation.
- Dividend yield of 0.73% is modest.
- Quarterly PAT declined (₹51.9 Cr vs ₹64.6 Cr).
📉 Company Negative News
- DII holdings decreased (-2.62%), showing reduced domestic institutional confidence.
- Quarterly profit dropped by 30%, raising concerns about earnings stability.
📈 Company Positive News
- FII holdings increased (+3.37%), reflecting strong foreign investor interest.
- Debt-free status ensures financial stability.
🏦 Industry
- Renewable energy and clean technology sector benefits from global sustainability push.
- Industry P/E of 29.0 positions CLEAN at a premium valuation.
🔎 Conclusion
CLEAN offers strong efficiency metrics and debt-free stability, making it a potential candidate for long-term investment. However, high PEG ratio and declining profits limit attractiveness at current levels. Entry around ₹750–₹780 provides margin of safety, while investors should monitor quarterly earnings and institutional activity. Profit booking near resistance zones is advisable, with long-term holding only if earnings momentum improves.