Clean Science & Technology is rated neutral by Motilal Oswal Financial Services, with a target price of Rs 1345

Clean Science & Technology is rated neutral by Motilal Oswal Financial Services, with a target price of Rs 1345. Clean Science & Technology is currently trading at Rs 1365.6.

Clean Science & Technology, founded in 2003, is a Small Cap company (with a market cap of Rs 14473.27 Crore) in the Chemicals sector.

For the fiscal year ending 31-Mar-2022, Clean Science & Technology’s key products/revenue segments include speciality chemicals, export incentives, electricity, and scrap.

Financials For the quarter ended 31-12-2022, the company reported a Consolidated Total Income of Rs 249.91 Crore, a decrease of -.16% from the previous quarter Total Income of Rs 250.31 Crore and an increase of 32.74% from the same quarter last year Total Income of Rs 188.27 Crore. In the most recent quarter, the company reported a net profit after tax of Rs 83.79 crore.

Mr.Pradeep Ramwilas Rathi, Mr.Ashok Ramnarayan Boob, Mr.Siddhartha Ashok Sikchi, Mr.Krishnakumar Ramnaray Boob, Mr.Sanjay Kothari, Mr.Ganapati Dadasaheb Yadav, Mr.Keval Navinchandra Doshi, Ms.Madhu Dubhashi. BSR & Co. LLP serves as the company’s auditors. The company had 11 crore shares outstanding as of December 31, 2022.

Justification for Investment
Continuing its R&D pursuit, the company has entered the HALS series (estimated global market size of USD1 billion), becoming the first company in India to develop the HALS series, as well as other new products in its R&D pipeline. The company is also expected to generate FCF of INR4.8b over FY23-25, with a capex of INR4.8b planned. It will remain net cash positive by funding this capex with internal accruals.

FII/Promoter Holdings
As of December 31, 2022, promoters owned 78.5 percent of the company, while FIIs owned 3.99 percent and DIIs owned 4.65 percent.