CLEAN - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.6
| Stock Code | CLEAN | Market Cap | 8,569 Cr. | Current Price | 804 ₹ | High / Low | 1,600 ₹ |
| Stock P/E | 31.5 | Book Value | 146 ₹ | Dividend Yield | 0.75 % | ROCE | 29.3 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 885 ₹ | DMA 200 | 1,077 ₹ |
| Chg in FII Hold | -1.13 % | Chg in DII Hold | 0.79 % | PAT Qtr | 51.9 Cr. | PAT Prev Qtr | 64.6 Cr. |
| RSI | 34.6 | MACD | -18.6 | Volume | 2,99,043 | Avg Vol 1Wk | 7,97,700 |
| Low price | 770 ₹ | High price | 1,600 ₹ | PEG Ratio | 3.69 | Debt to equity | 0.00 |
| 52w Index | 4.12 % | Qtr Profit Var | -30.0 % | EPS | 25.6 ₹ | Industry PE | 27.4 |
📊 Analysis: CLEAN trades at a P/E of 31.5, above the industry average of 27.4, indicating premium valuation. Strong ROE (21.9%) and ROCE (29.3%) highlight efficient capital use. EPS of 25.6 ₹ supports profitability, while dividend yield of 0.75% adds modest stability. Debt-to-equity is 0.00, reflecting a debt-free balance sheet. However, PEG ratio of 3.69 suggests overvaluation relative to growth. Technicals show price below DMA 50 (885 ₹) and DMA 200 (1,077 ₹), with RSI at 34.6 indicating oversold conditions and MACD (-18.6) signaling bearish momentum. Quarterly PAT declined (51.9 Cr. vs 64.6 Cr.), raising caution on earnings momentum despite strong fundamentals.
💰 Ideal Entry Zone: Between 770 ₹ – 800 ₹ (near support levels and oversold RSI zone). Current price (804 ₹) is slightly above ideal entry, so staggered accumulation is recommended.
📈 Exit / Holding Strategy: For long-term investors already holding, maintain positions given strong ROE, ROCE, and debt-free status. Exit only if price sustains below 770 ₹ or if earnings continue to decline. Holding period: 2–4 years, with periodic review of profitability and valuation multiples.
Positive
- Strong ROE (21.9%) and ROCE (29.3%) indicate efficient capital use
- EPS of 25.6 ₹ supports profitability
- Debt-free balance sheet (Debt-to-equity 0.00)
- Dividend yield of 0.75% adds modest stability
- RSI at 34.6 suggests oversold conditions, potential rebound
Limitation
- P/E of 31.5 is higher than industry average (27.4)
- PEG ratio of 3.69 indicates overvaluation relative to growth
- Quarterly PAT declined (-30.0%)
- Price below DMA 50 and DMA 200 reflects weak technical trend
- MACD (-18.6) signals bearish momentum
Company Negative News
- Quarterly PAT dropped (51.9 Cr. vs 64.6 Cr.)
- FII holdings reduced (-1.13%), showing foreign caution
Company Positive News
- DII holdings increased (+0.79%), reflecting domestic support
- Debt-free balance sheet strengthens financial stability
Industry
- Industry P/E at 27.4 shows CLEAN trades at a premium
- Renewable and clean energy sector supported by government initiatives and global demand
Conclusion
⚖️ CLEAN is a fundamentally strong company with efficient capital use and debt-free status, but faces short-term earnings pressure and trades at premium valuations. Ideal entry is near 770–800 ₹. Long-term holders should maintain positions for 2–4 years, monitoring profitability and sector trends.