Clean Science & Technology down by 50% ; Specialty Chemical; Fundamental Analysis; What Should Investors Do ?
About Company
- Incorporated in 2003, Clean Science and Technology Ltd is one of the leading chemical manufacturers globally.
- It manufactures functionally critical specialty chemicals such as Performance Chemicals (MEHQ, BHA, and AP), Pharmaceutical Intermediates (Guaiacol and DCC), and FMCG Chemicals.
- Clean science works on developing eco-friendly and sustainable manufacturing processes of specialty and fine chemicals
- Company has 3 manufacturing units with 44,000 MTPA
- Company is debt free.
News
- Clean Science & Technology share price is down by 50% in last 2 years
- In last 1 year company has given negative 16.72 % returns to their investors
- In July 2021, Company launched its IPO & listed at a price of 1635 but now it is trading at 1291 level as on 14th May 2024
- Since its IPO launch share price is down by 21%.
Product Portfolio
Company has the largest capacity in the world for their flagship products.
- Performance Chemicals
- MEHQ No.1 in world.- Used in agrochemical industry
- BHA No.1 in world – Used as anti-oxidant in food and feed industry
- AP No.1 in world- Used in infant food formulations, breakfast cereals and cosmetics
- TBHQ No.2 in World- Stabilizer in oil industry
- HALS No.1 in India- Used in water treatment
- Pharma & agro Intermediates
- Guaiacol : No.1 in India & No.2 in World,Pre-cursor to manufacture APIs for cough syrup ,Key raw material to produce Vanillin
- DCC (Dicyclohexyl Carbodiimide) No.1 in India & No.2 in World, Used as reagent in anti-retroviral
- p-BQ (Para Benzoquinone) No.1 in India & No.2 in World Intermediate in agrochemical industry
- FMCG Chemicals
- 4-MAP No.1 in world, Used in UV blocker in sunscreens
- Anisole : No.1 in world, Precursor to perfumes, insect pheromones, pharmaceuticals. Majority of Anisole produced is used for captive consumption
Revenue Mix
Product Wise Breakup
Location Wise Breakup
Key Ratios
| Market Cap | ₹ 13,692 Cr. |
| Current Price | ₹ 1,289 |
| High/Low | ₹ 1,622 / 1,276 |
| Stock PE | 53.8 |
| Sector PE | 34 |
| ROCE | 44.5 % |
| ROE | 33.2 % |
| PEG Ratio | 1.24 |
| Debt To Equity | 0 |
Shareholding Pattern
Change In Shareholding Pattern
| Jun-21 | Mar-24 | Change | |
| Promoters + | 94.65% | 74.98% | -19.67% |
| FIIs + | 0.00% | 5.88% | 5.88% |
| DIIs + | 0.77% | 5.04% | 4.27% |
| Public + | 4.58% | 14.11% | 9.53% |
- Promoters:
- Promoters’ ownership has decreased significantly from 94.65% in June 2021 to 74.98% in March 2024, indicating a substantial decrease of 19.67%. This sharp decline suggests that promoters have likely divested a considerable portion of their shares or that there has been substantial dilution of their ownership through issuance of new shares. After the launch of IPO , within 3 years company has to decrease their shareholding to below 75%.
- FIIs (Foreign Institutional Investors):
- FIIs’ ownership has increased from 0.00% in June 2021 to 5.88% in March 2024, indicating a notable increase of 5.88%. This suggests that foreign institutional investors have entered the market or increased their stake significantly during this period, possibly due to favorable market conditions or attractive investment opportunities.
- DIIs (Domestic Institutional Investors):
- DIIs’ ownership has increased from 0.77% in June 2021 to 5.04% in March 2024, showing a substantial increase of 4.27%. Similar to FIIs, domestic institutional investors have also increased their stake in the market significantly, possibly indicating confidence in the market’s potential or attractive valuation of assets.
- Public:
- Public ownership has increased from 4.58% in June 2021 to 14.11% in March 2024, indicating a notable increase of 9.53%. This suggests that individual retail investors have also shown increased interest in the market and have likely invested more during this period.
Financial Trend
-
Sales:
- Sales in March 2019: 393
- Sales in March 2023: 936
So, there was approximately a 138.09% increase in sales from March 2019 to March 2023.
-
Net Profit:
- Net profit in March 2019: 98
- Net profit in March 2023: 295
There was approximately a 201.02% increase in net profit from March 2019 to March 2023. (Business Line News)
Company Valuation
- Current PE- 53.8 (Blue Line)
- Median PE- 63.4 (Red Line)
- As the current PE is less than the Median PE, we can say that company is undervalued.
Should you Invest ?
- Company has delivered good profit growth of 43.3% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 36.4%
- Company has been maintaining a healthy dividend payout of 55.6%
- Currently company is at 50% discounted price from its all time high price, this can be the best opportunity to buy right now.
- Company has done exceptionally well in the specialty chemical sector & it will continue to do in the future as well.
- If & only if you are a long term investor then think of investing in this company
Check out this- Fundamental Analysis of Sula Vineyards
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about Clean Science & Technology
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
- If you have any further queries, please comment below. We will be happy to answer all your questions.
- If you like this information, share the article with as many people as possible
