Hold Clean Science and Technology: target of Rs 930 : ICICI Securities

Hold

ICICI Securities's research report on Clean Science and Technology

Clean Science’s (CST) performance was impacted from a dip in volumes owing to demand headwinds and a Chinese customer backward integrating. CST anticipates a muted Q3FY26 and a recovery emerging in Q4FY26 along with a rise in off-take for new products, including barbituric acid, performance chemical-1 and DHDT. The company is open to supporting its customers by cutting prices, and thereby, making them competitive against Chinese supplies in the end-market; it prioritises retaining leadership and market share. HALS performance has shown improvement with a consistent rise in volumes and improvement in gross profit margins.

Outlook

We cut our FY26–27E EPS by 16–19% and TP to INR 930 (vs. INR 1,330) with a FY27E P/E multiple of 30x (35x earlier). We upgrade to HOLD (from Reduce) and anticipate a recovery only in FY27.

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