Hold Clean Science & Technology, target price Rs 1560: ICICI Securities

ICICI Securities has hold call on Clean Science & Technology with a target price of Rs 1560. The current market price of Clean Science & Technology is Rs 1495.85.

Clean Science & Technology, incorporated in the year 2003, is a Small Cap company (having a market cap of Rs 15903.76 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 229.49 Crore, down -8.17 % from last quarter Total Income of Rs 249.91 Crore and up 8.27 % from last year same quarter Total Income of Rs 211.96 Crore. Company has reported net profit after tax of Rs 80.53 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 B S R & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 11 Crore shares outstanding.

Investment Rationale
Clean Science has added 2ktpa capacity in unit-3 of its plant and plans to add another 15ktpa in unit-4, which will help significantly cover the HALS portfolio. Company expects to utilise the entire HALS capacity in next 3-4 years. It is also adding new products in performance chemicals and pharmaceutical intermediates with Rs2bn capex, which will get commissioned in H1FY25.

The two expansions should imply strong growth FY25onward. Though margins are likely to shrink due to initial set-up of two projects, the company expects margin improvement over the next few years.

Promoter/FII Holdings
Promoters held 78.5 per cent stake in the company as of 31-Mar-2023, while FIIs owned 3.99 per cent, DIIs 4.76 per cent.