Mid-cap specialty chemical stock Clean Science rises 8% post Q4 results, dividend announcement. Time to buy or sell?
Stock Market Today: Mid-cap specialty chemical stock Clean Science gained more than 8% during the intraday trade on Friday following the announcement of its March quarter results (Q4) and dividend.
Clean Science share price hit the day's high of ₹ 1447 on the BSE as against its last close of ₹ 1329.20. As of 2.30 pm, Clean Science stock was trading at ₹ 1431.60, up 7.70%.
Clean Science and Technology, post-market hours on Thursday, said that its net profit increased by 5.89% from ₹ 70.09 crore in the January-March 2024 quarter to ₹ 74.23 crore in January-March 2025 quarter.
The reported net sales for the March 2025 quarter for Clean Science and Technology stood at ₹ 263.68 crore, up 15.89% from March 2024's ₹ 227.53 crore. The earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 7.91% from ₹ 108.57 crore in March 2024 to ₹ 117.16 crore in March 2025.
Motilal Oswal Financial Services (MOFSL) expects Clean Science's revenue, EBITDA and net profit to grow at a compounded annual growth rate (CAGR) of 26%, 24% and 30% during FY25-27, respectively.
The company is expected to generate around ₹ 190 crore in free cash flow during FY26-27, with a planned capex of ₹ 600 crore over the same period. The stock is currently trading at 32 times FY27 estimated earnings per share (EPS) of ₹ 42 and 23 times FY27 estimated EV/EBITDA. MOFSL values the stock at 30 times FY27 estimated EPS to arrive at their target price of ₹ 1,260. It has a 'Neutral' rating for the mid-cap chemical stock.
Prabhudas Lilladher believes Clean Science Tech's new capex initiatives are expected to be key growth drivers. Clean Science construction has commenced on a second performance chemical plant focused on water treatment, which is scheduled to be operational by Q4FY26. However, the margin profile, as per Prabhudas Lilladher, may come under some pressure, as certain new products are expected to have lower profitability compared to the company's legacy portfolio. At its current valuation of 37 times FY27 EPS, the brokerage maintained a 'Hold' rating on Clean Science stock, with a target price of ₹ 1,361, valuing it at 38 times FY27 EPS.
B&K Securities, however, has a 'Buy' Rating on the stock, with a target price of ₹ 1,716.
B&K Securities' analysts say that based on the expanded HALS product basket, ongoing scale-up, and widening geographical footprint, the company expects to clock 4,500 MT volumes, garnering ₹ 210 crore revenue and capturing 65% of the domestic market share in HALS in the coming year. Two new performance products, slated for commercialisation in August 2025 and February 2026, are also expected to aid FY26E growth, while the legacy portfolio is expected to grow at around 5-6% YoY in line with the industry growth.
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