Clean Max Enviro Energy Solutions Limited

Utilities — Utilities - Renewable · NSE

₹1,283.40+₹27.90 (+2.22%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Clean Max Enviro Energy Solutions Limited engages in development and maintenance of renewable energy projects, such as solar and wind power solutions for commercial and industrial customers.

IndustryUtilities - Renewable

SectorUtilities

Employees594

Annual revenue₹1,908 Cr

How does it make money?

Turns over ₹1,908 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹62 left at the operating level before interest, tax and depreciation. Each of its 594 employees supports ₹3.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE13.7%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 34.2% and earnings to grow about 138.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+34.2%

Est. earnings growth+138.4%

Analysts8

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +106% while net margin moved -170% 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+106%

Margin effect-170%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.32x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.66 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.2x — little room if profits dip
✗ Debt has grown 49.0% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

32/ 100

Expensive

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

94.0x

Sector Median

14.6x

median of 3 sector peers

⚠️Against its sector it trades 542% above the peer median of 14.6x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

14.6x median of 3 peers · +542%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 42.5% to 61.6% over 3 years.
Return on equity is rising
ROE has improved from -5.4% to 2.0%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 231% over 3 years, from ₹3,875 Cr to ₹12,808 Cr.
🔴High leverageFinancial
Debt/Equity of 2.32x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.66 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 42.5% to 61.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 10.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 542% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 20% a year✓ 27.1% CAGR
Latest reported year was 109.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 60%✓ 61.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 10.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹4,023 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹15,093 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

94.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.24x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.65

Profitable

Profitable on a per-share basis

ROE

2.0%

Weak

Weak capital efficiency

ROCE

4.9%

Weak

Low return on total capital employed

Debt/Equity

2.32x

High

High leverage

Revenue Growth (YoY)

109.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

238.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹4,023 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

40.9x

Improving

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

Operating Margin

36.8%

Good

Healthy core-business profitability

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

0.66

Tight

Tight short-term liquidity

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1338.9 / 1310.3

Bullish alignment (short > long)

RSI (14)

34.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹929 Cr	₹1,390 Cr	₹1,494 Cr	₹1,908 Cr	+27.1%
EBITDA	₹395 Cr	₹719 Cr	₹935 Cr	₹1,175 Cr	+43.8%
EBITDA Margin	42.5%	51.8%	62.6%	61.6%	—
PAT (Net Profit)	-₹65 Cr	-₹31 Cr	₹28 Cr	₹94 Cr	—
EPS	₹-5.57	₹-2.65	₹2.38	₹8.96	—
ROE	-5.4%	-1.7%	1.1%	2.0%	—
ROCE	3.6%	6.3%	6.5%	4.9%	—
Total Debt	₹3,875 Cr	₹5,570 Cr	₹8,087 Cr	₹12,808 Cr	+49.0%
Free Cash Flow	-₹1,918 Cr	-₹1,780 Cr	-₹1,506 Cr	-₹4,023 Cr	—

🟢 Revenue has grown at 27.1% a year over 3 years.

🟢 EBITDA has grown at 43.8% a year over 3 years.

🟢 EBITDA Margin has risen from 42.5% to 61.6% over 3 years (+19.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹65 Cr to ₹94 Cr.

🟢 EPS has turned positive, from ₹-5.57 to ₹8.96.

🟢 ROE has risen from -5.4% to 2.0% over 3 years (+7.4 pts).

🟢 ROCE has risen from 3.6% to 4.9% over 3 years (+1.3 pts).

🔴 Total Debt has grown at 49.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹23,098 Cr

Total Liabilities

₹17,575 Cr

Cash & Equivalents

₹1,202 Cr

Operating Cash Flow

₹1,731 Cr

Capex

-₹5,754 Cr

Shareholding (proxy)

Institutional Holding

18.2%

Insider Holding

63.4%

Analyst Consensus

Recommendations

10 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,591.5

+24.0% vs CMP

Target Range

₹1,400 – ₹1,711

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%

Recent News

2 mixed4 general

Clean Max Enviro Energy Solutions approves sale of 26% stake in subsidiary

scanx.trade, 16 Oct

Clean Max Enviro Energy Solutions raises ₹2,500 crore via green bond issuance; shares rise 9% in a month

Upstox, 28 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Clean Max Enviro Energy Solutions IPO Struggles On Debut Day; GMP muted;Apply or stay away?

Goodreturns, 15 Oct

Clean Max Enviro Energy Solutions (CLEANMAX) Share Price rises 5.58% to Rs 1,375.95

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Block deal alert! Clean Max shares in focus as Augment India likely to sell stake worth Rs 1,063 crore

The Economic Times, 28 Sept

Renewable energy demand could rise as data centres surge in India

Business Standard, 16 Oct

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Profitability

WeakFinancial Health · Valuation · Risk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑