Neutral Clean Science and Technology; target of Rs 1589: Motilal Oswal

Motilal Oswal recommended Neutral rating on Clean Science and Technology with a target price of Rs 1589 in its research report dated October 20, 2022.

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October 25, 2022 / 13:45 IST

26 Aug, 2025 12:21

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Motilal Oswal's research report on Clean Science and Technology

CLEAN reported a beat on our EBITDA estimate, while gross margin expanded to 62.5% (est. 59.2%). EBITDAM was flat at 39.4% (v/s 39% in 1QFY23). The Performance and FMCG Chemicals segment performed better QoQ, led by increased realizations across all products. n Input prices remain volatile and a short-term concern for the company. The prices of some raw materials have fallen, while for some it still remains near the peak as compared to last fiscal. n The management announced that the commercialization of Phase I of Unit IV is expected in Dec’23. The company is undertaking a capex of INR3b, which will be funded via internal accruals. Production of HALS (HALS701 and HALS770 series) will start from Nov’22 (earlier guidance of Dec’22), with all facilities nearing completion.

Outlook

The stock is trading at 41x FY24E P/E, with an EPS of INR39.7 and 31x FY24E EV/EBITDA. We value the company at 40x FY24E EPS to arrive at our TP of INR1,589/share.

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