Mid-cap specialty chemical stock Clean Science rises 8% post Q4 results, dividend announcement. Time to buy or sell?
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
2 hours ago
- Hans India
7 of top ten largest firms lose Rs 1.36 lakh crore in last week
Six of the top ten most valued firms in India lost Rs 1.361 lakh crore in market capitalisation last week, with Reliance Industries suffering the biggest loss. Markets fell for the sixth straight week following US President Donald Trump's unexpected announcement of a 50 per cent tariff on Indian goods. The Nifty and Sensex fell by nearly one per cent, closing at 24,363 and 79,857, respectively. From the top ten firms in Nifty pack, Reliance Industries, HDFC Bank, Bharti Airtel, ICICI Bank, Infosys and Hindustan Unilever faced erosion in their market valuation. The valuation of Reliance Industries dipped by Rs 34,710 crore to Rs 18,51,174 crore. HDFC Bank's market capitalisation tanked Rs 29,722 crore to Rs 15,14,303 crore. The market value of ICICI Bank fell by Rs 24,719 crore to Rs 10,25,495 crore, and that of Infosys dropped by Rs 19,504 crore to Rs 5,91,423 crore. The valuation of Bharti Airtel declined by Rs 15,053 crore to Rs 10,59,850 crore, and that of Hindustan Unilever by Rs 12,441.09 crore to Rs 5,87,021.88 crore. Tata Consultancy Services (TCS), State Bank of India, Life Insurance Corporation of India (LIC) and Bajaj Finance gained in value. However, the mcap of LIC jumped Rs 17,678 crore to Rs 5,77,188 crore. The valuation of TCS climbed Rs 11,361 crore to Rs 10,97,909 crore. State Bank of India added Rs 9,784 crore, taking its valuation to Rs 7,42,649 crore, and that of Bajaj Finance went up by Rs 186 crore to Rs 5,45,148 crore. Broader indices underperformed benchmark indices with BSE midcap index falling 1 per cent and BSE smallcap index falling 2 per cent. On the sectoral front, domestic demand-driven segments such as infrastructure, select autos, and rural-focused FMCG may display relative resilience if macro conditions hold steady, analysts said.
Deccan Herald
3 hours ago
- Deccan Herald
Mcap of 6 of top-10 valued firms erodes by Rs 1.36 lakh crore; Reliance hit hard
New Delhi: The combined market valuation of six of the top 10 valued firms eroded by Rs 1,36,151.24 crore last week, with Reliance Industries taking the biggest hit, following a bearish trend in losing streak for the sixth consecutive week, the BSE benchmark dropped 742.12 points or 0.92 per cent, and the NSE Nifty declined 202.05 points or 0.82 per the top 10 pack, Reliance Industries, HDFC Bank, Bharti Airtel, ICICI Bank, Infosys and Hindustan Unilever faced erosion in their valuations while Tata Consultancy Services (TCS), State Bank of India, Life Insurance Corporation of India (LIC) and Bajaj Finance were the Bank hikes minimum balance requirement for new savings accounts by 5x to Rs 50, valuation of Reliance Industries tumbled Rs 34,710.8 crore to Rs 18,51,174.59 crore. HDFC Bank's market capitalisation (mcap) tanked Rs 29,722.04 crore to Rs 15,14,303.58 mcap of ICICI Bank fell by Rs 24,719.45 crore to Rs 10,25,495.69 crore, and that of Infosys dropped by Rs 19,504.31 crore to Rs 5,91,423.02 valuation of Bharti Airtel declined by Rs 15,053.55 crore to Rs 10,59,850.32 crore, and that of Hindustan Unilever by Rs 12,441.09 crore to Rs 5,87,021.88 the mcap of LIC jumped Rs 17,678.37 crore to Rs 5,77,187.67 crore. The valuation of TCS climbed Rs 11,360.8 crore to Rs 10,97,908.66 Bank of India added Rs 9,784.46 crore, taking its valuation to Rs 7,42,649.34 crore, and that of Bajaj Finance went up by Rs 186.43 crore to Rs 5,45,148.52 Industries remained the most valued firm, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Hindustan Unilever, LIC and Bajaj Finance.
India.com
4 hours ago
- India.com
Smallcap Stocks Dip Amid FII Selling, Tariff Concerns
New Delhi: Broader indices lagged behind benchmark indices, declining for the third consecutive week as US President Donald Trump threatened 50 per cent tariffs on Indian goods. BSE largecap and midcap indices fell 1 per cent each this week, while the BSE smallcap index declined nearly 2 per cent. The Nifty smallcap 100 dropped 8.31 per cent in a month, closing at 17,478. The Nifty midcap 100 fell 5.62 per cent in a month ending at 57,094. PG Electroplast, Kitex Garments, Titagarh, Ramco Cement, Unichem Laboratories, Morepen Laboratories and Advait Energy Transitions reported declines of 6 to 24 per cent. Market volatility amid mixed quarterly earnings and ongoing foreign institutional investor selling following the US new tariffs on India, resulted in underperformance of broad cap indices. Foreign institutional investors (FIIs) net sold equities worth Rs 10,652 crore, marking their sixth consecutive week of selling. Domestic institutional investors (DII) continued their buying streak in the 16th week, purchasing equities valued at Rs 33,608.66 crore. On the sectoral front, Nifty Pharma, Realty, FMCG, and Healthcare sectors fell by 2 per cent each. In contrast, PSU Bank, media, and metal sectors increased by 0.5 to 1.5 per cent. Small caps outperformed large-caps in 2024 but began 2025 with cautious outlooks due to high valuations and possible earnings slowdown. At least 10 penny stocks, primarily small-caps, have dropped 60 to 80 percent in FY26 so far. On the sectoral front, domestic demand-driven segments such as infrastructure, select autos, and rural-focused FMCG may display relative resilience if macro conditions hold steady, analysts said. Ajit Mishra from Religare Broking Ltd said, "The Nifty's close below 24,450 has increased the risk of further correction, with immediate support placed near 24,200. On the upside, resistance is expected around the 24,600–24,800 zone, with a stronger barrier at 25,200." "Broader market indices remain vulnerable given their higher beta to FII outflows. Any rebound is likely to be short-lived unless accompanied by easing trade tensions and a reversal in FII flows," he added.
