Clean Science and Technology Limited

Basic Materials — Specialty Chemicals · NSE

₹783.75−₹10.70 (−1.35%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Clean Science and Technology Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Clean Science and Technology Limited, together with its subsidiaries, manufactures fine and specialty chemicals in India, China, the United States, Europe, and internationally. It operates through Performance Chemicals, FMCG Chemicals, and Pharma & Agro Intermediates segments.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees396

Annual revenue₹942 Cr

How does it make money?

Turns over ₹942 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 396 employees supports ₹2.38 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin38.9%

Net margin24.4%

Revenue / employee₹2.38 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 19.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.2%

ROE14.5%

Peer median ROE22.3%

What is the outlook?

13 analysts covering the stock expect revenue to grow about 30.1% and earnings to grow about 27.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+30.1%

Est. earnings growth+27.0%

Analysts13

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +2% while net margin moved -23% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2%

Margin effect-23%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.6% — barely ahead of inflation
✗ Profit has declined at 8.0% a year

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.8x

3Y Median

49.1x

40 monthly readings · mean 47.4x · range 26.4x–68.7x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 49.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 40.4x.

vs. its own history

Cheap

49.1x median over 40 months · -27%

vs. sector peers

Fair

40.4x median of 4 peers · -11%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

35.8x

P/B

5.26x

EV/EBITDA

22.6x

PEG

7.61

Dividend Yield

0.77%

What's Good / What's Bad

🟢 What's Going Well3

Valuation below its historical average
At 35.8x the stock trades 27% below its own median of 49.1x.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 45.4% to 38.9% over 3 years.
Return on equity is falling
ROE has dropped from 29.2% to 14.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 38.2% to 19.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 41% against revenue growth of 2% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 41% against revenue growth of 2% — stock may not be moving.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.4 points, from 45.4% to 38.9%.
🟡Profit is decliningFinancial
Net profit is down 22% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 41% against revenue up 2% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 41% against revenue up 2% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹73 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 45.4% to 38.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 41% against revenue up 2%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 0.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 29.2% to 14.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 37%✓ 38.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.6% CAGR
Latest reported year was 10.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹73 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹8,330 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.8x

Fair

Fairly valued against the generic band

P/B Ratio

5.26x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹21.91

Profitable

Profitable on a per-share basis

ROE

14.5%

Moderate

Moderate capital efficiency

ROCE

19.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

10.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4.7%

Modest

Slow profit growth

Dividend Yield

0.77%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹73 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹783.75

P/E (Forward)

24.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

28.1%

Good

Healthy core-business profitability

Net Margin

23.7%

Good

Strong bottom-line conversion

Current Ratio

5.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

807.4 / 819.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹926 Cr	₹780 Cr	₹950 Cr	₹942 Cr	+0.6%
EBITDA	₹420 Cr	₹346 Cr	₹399 Cr	₹367 Cr	-4.4%
EBITDA Margin	45.4%	44.3%	42.0%	38.9%	—
PAT (Net Profit)	₹295 Cr	₹244 Cr	₹264 Cr	₹230 Cr	-8.0%
EPS	₹27.78	₹22.96	₹24.88	₹21.6	-8.0%
ROE	29.2%	20.3%	18.7%	14.5%	—
ROCE	38.2%	26.5%	24.6%	19.2%	—
Total Debt	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+1.3%
Free Cash Flow	₹96 Cr	₹5 Cr	₹72 Cr	₹73 Cr	-8.5%

🟡 Revenue has been broadly flat over 3 years (0.6% a year).

🔴 EBITDA has shrunk at 4.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 45.4% to 38.9% over 3 years (-6.4 pts).

🔴 PAT (Net Profit) has shrunk at 8.0% a year over 3 years.

🔴 EPS has shrunk at 8.0% a year over 3 years.

🔴 ROE has fallen from 29.2% to 14.5% over 3 years (-14.7 pts).

🔴 ROCE has fallen from 38.2% to 19.2% over 3 years (-19.0 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

🔴 Free Cash Flow has shrunk at 8.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,783 Cr

Total Liabilities

₹199 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹28 Cr

Operating Cash Flow

₹275 Cr

Capex

-₹201 Cr

Shareholding (proxy)

Institutional Holding

23.7%

Insider Holding

55.2%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹6

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

11 Buy · 2 Hold · 1 Sell

Target Price (Mean)

₹966.86

+23.4% vs CMP

Target Range

₹770 – ₹1,359

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

3 mixed3 general

Clean Science and Technology (NSEI:CLEAN) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Clean Science and Technology (CLEAN.NS) Slips 2.95% to ₹794.45 as Stock Drifts Toward Mid-Range Support - Quote Data

https://www.siam.in/, 15 Oct

CLEAN Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Clean Science And Technology Ltd. Peer Comparison – Compare with Others

Value Research, 26 Aug

Clean Science and Technology Stock Signals to Watch This Week

Univest, 23 Sept

Clean Science Reports Q1 Net Profit Of 732 Million Rupees, Down From 765 Million

Sahi, 01 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.3/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak5/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair7.9/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 37%38.9%
✗Revenue growth stays above 4% a year0.6% CAGR
✓Free cash flow remains positive₹73 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 16%19.2%