Hold Clean Science and Technology; target of Rs 1383: Prabhudas Lilladher

About this update from Clean Science & Technology Ltd.

Prabhudas Lilladher's research report on Clean Science and TechnologyClean Science and Technology (CLEAN) reported revenue of Rs 2.3bn (+4.9% YoY, +16.8% QoQ), growth was primarily driven by increase in volumes across all the segments. In FY24, revenue share of America and Europe remain steady while domestic share improved to 36% vs 28% in FY23 led by new products which includes TBHQ, DCC, HALS. The new HALS facility of Rs3.4bn was commissioned in Mar’24, and is expected to sale 3000tn till the end of FY25. Principal products contribution was 76% vs 84% in Q3FY24, while new products contribution increased to 23% from 18.5%. New products are expected to led the volume growth in FY25 with DCC, TBHQ which were running at lower capacity have picked up and are running at higher utilization. The positioning of the company is unique with niche offerings, whereby maintaining EBITDM of 42%, primarily aided by new products.OutlookThe company trades at 42x FY25 EPS and appears richly valued. Maintain ‘Hold’ rating with TP of Rs1,383 valuing at 37x FY26 EPS.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Clean Science and Technology - 16052024 - prabhu

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