Sell Clean Science & Technology, target price Rs 1262: HDFC Securities

HDFC Securities has sell call on Clean Science & Technology with a target price of Rs 1262.The current market price of Clean Science & Technology is Rs 1520.

Clean Science & Technology, incorporated in the year 2003, is a Small Cap company (having a market cap of Rs 16230.97 Crore) operating in Chemicals sector.

Clean Science & Technology key Products/Revenue Segments include Speciality Chemicals, Export Incentives, Electricity and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 249.91 Crore, down -.16 % from last quarter Total Income of Rs 250.31 Crore and up 32.74 % from last year same quarter Total Income of Rs 188.27 Crore. Company has reported net profit after tax of Rs 83.79 Crore in latest quarter.

The company’s top management includes Mr.Pradeep Ramwilas Rathi, Mr.Ashok Ramnarayan Boob, Mr.Siddhartha Ashok Sikchi, Mr.Krishnakumar Ramnarayan Boob, Mr.Sanjay Kothari, Mr.Ganapati Dadasaheb Yadav, Mr.Keval Navinchandra Doshi, Ms.Madhu Dubhashi. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 11 Crore shares outstanding.

Investment Rationale
The RoE is expected to decline from 34.9% in FY22 to 27.5% in FY25,owing to a reduction in margin. Q3 EBITDA/APAT were 8%/19% above the brokerage's estimates, owing to lower-than-expected raw material costs, lower-than expected operating expenses, and higher-than-expected other income.

Promoter/FII Holdings
Promoters held 78.5 per cent stake in the company as of 31-Dec-2022, while FIIs owned 3.99 per cent, DIIs 4.65 per cent.