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Clean Science shares tank 7% post Q1 results; should you buy, sell or hold?
Clean Science shares tank 7% post Q1 results; should you buy, sell or hold?

Business Standard

time18-07-2025

  • Business
  • Business Standard

Clean Science shares tank 7% post Q1 results; should you buy, sell or hold?

Clean Science share price today: Shares of chemical manufacturer Clean Science & Technology crashed over 7 per cent to hit an intra-day low of ₹1,332.4 on the NSE after it reported its June 2025 quarter (Q1FY26) results. At 11:45 AM, the stock was trading 7.4 per cent lower at ₹1,338 compared to the previous day's close of ₹1,445.2 on the NSE. In comparison, the benchmark NSE Nifty 50 index was trading at 24,953.90 levels, down by 157.55 points or 0.63 per cent. The company's total market capitalisation stood at ₹14,271.69 crore. The stock has plunged over 21 per cent from its 52-week high of ₹1,690 touched on August 1, 2024. Clean Science & Technology Q1FY26 result update Clean Science's consolidated revenue from operations for the June 2025 quarter came in at ₹242.86 crore, up 8.4 per cent year-on-year (Y-o-Y) from ₹224 crore in the year-ago period. The company reported a 6.2 per cent Y-o-Y increase in profit after tax (PAT) to ₹70 crore against ₹65.9 crore in the June 2024 quarter. Its earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹100 crore, up 5 per cent Y-o-Y from ₹95 crore in the year-ago period. Ebitda margin slipped to 41.7 per cent from 42.8 per cent. During the earnings call, the management highlighted that the promoters are evaluating the possibility of selling a minority stake to support the family estate planning. Currently, the promoters own a 74.97 per cent stake in the company. Brokerage views on Clean Science & Technology: JM Financial According to analysts at JM Financial, Clean Science's Q1 Ebitda was in line with their estimates. "We expect the subsidiary to start contributing positively from Q3FY26, driven by the ramp-up of value-added HALS grades. Besides HALS, the company's two new performance chemical capacities are on track to be commercialised, with one set to see commercial production in September 2025 and the other in Q4FY26, the brokerage said in a note. The brokerage has maintained a 'Buy' with a revised September 2026 TP of ₹1,780 per share (from ₹1,820 earlier), based on 40x Sep'27E EPS. Motilal Oswal Financial Services (MOFSL) "While the non-established products face demand softness, we expect the established products, which contribute to 83 per cent of standalone sales, to continue to deliver steady growth, coupled with the commissioning of Performance Chemical 1 in Q2FY26 and Performance Chemical 2 by Q4FY26, are expected to be an additional revenue driver," the brokerage said. MOFSL has lowered its estimates for FY26/FY27 cuts by 9 per cent each, owing to higher tax rates and expects a revenue/ Ebitda/ PAT CAGR of 23/23/27 per cent during FY25-27E. The brokerage has maintained a 'Neutral' rating with a target price of ₹1,350. About Clean Science & Technology Incorporated in 2003, Clean Science and Technology is engaged in the manufacturing of performance chemicals, pharma and agrochemicals, and FMCG chemicals. The company is involved in B2B business and its products find applications in various critical end-user industries and everyday product verticals, including precursors for agricultural chemicals, antioxidants for food and infant food formulations, precursors to manufacture APIs for cough syrup, polymers and monomers, the cosmetic industry, perfumes, and many other applications. Clean Science serves both national and international clients, including institutions, distributors, and dealers. It has a presence in 16 states in India and 36 countries worldwide.

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