JM Financial maintains Buy on Clean Science & Technology, revises target price to Rs 1,650

JM Financial has maintained its Buy call on Clean Science & Technology with a revised target price of Rs 1,650 (earlier Rs 1,670) The current market price of Clean Science & Technology Ltd. is Rs 1425.9. The time period given by the analyst is a year when Clean Science & Technology price can reach the defined target. Clean Science & Technology, incorporated in 2003, is a Small Cap company with a market cap of Rs 15146.27 crore, operating in the Chemicals sector.

Clean Science & Technology's key products/revenue Segments include Specialty Chemicals, Export Incentives, Electricity and Scrap for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 276.06 crore, up 12.20 % from last quarter Total Income of Rs 246.03 crore and up 14.27 % from last year same quarter Total Income of Rs 241.59 crore. The company has reported net profit after tax of Rs 74.09 crore in the latest quarter.

The company's top management includes Mr.Pradeep Rathi, Mr.Ashok Boob, Mr.Siddhartha Sikchi, Mr.Krishnakumar Boob, Mr.Sanjay Kothari, Prof.Ganapati Yadav, Mr.Keval Doshi, Ms.Madhu Dubhashi, Mr.Parth Maheshwari. The company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 11 crore shares outstanding.

Investment Rationale
On the basis of 4QFY25 results and management commentary, JM Financial has marginally lowered its FY26-27 EPS estimates for Clean Science & Technology by ~1% to factor in higher depreciation. The brokerage expects ~24%/27% EBITDA/EPS CAGR over FY25-28E. In case there is a pick-up in product prices, there could be an upside risk to their estimates while any delay in new product approvals could be a downside risk. JM Financial maintain sBUY with a revised Mar?26target price of Rs 1,650 (based on 40x Mar?27E EPS) as they see decent growth runway for Clean Science for at least the next 4-5 years.

Promoter/FII Holdings
Promoters held 74.97 per cent stake in the company as of 31-Mar-2025, while FIIs owned 6.07 per cent, DIIs 5.77 per cent.