Clean Science & Technology downgraded to 'Sell' by MarketsMOJO after flat results and expensive valuation.

Clean Science & Technology, a midcap chemical company, has recently been downgraded to a 'Sell' by MarketsMOJO. This downgrade comes after the company reported flat results in September 2024, with a decrease of -6.4% in its PAT(Q) at Rs 58.75 crore. This has led to a decrease in the company's return on equity (ROE) to 20.3%, making its valuation very expensive with a price to book value of 13.6.
In addition, the stock is currently trading at a premium compared to its historical valuations. Despite generating a return of 8.96% in the past year, the company's profits have fallen by -13.8%. This underperformance has been reflected in the stock's returns, which are much lower than the market (BSE 500) returns of 31.95%.

However, there are some positive factors to consider. Clean Science & Technology has a high management efficiency with a ROE of 26.41% and a low debt to equity ratio of 0 times. The company has also shown healthy long-term growth with an annual growth rate of 14.87% in net sales.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. It has shown a slight improvement since 31st October 2024, generating a return of -2.74% since then.

It is worth noting that the majority shareholders of Clean Science & Technology are promoters, which could potentially impact the company's decision-making and direction. Overall, while the company has some positive aspects, the recent downgrade by MarketsMOJO and its underperformance in the market may make it a 'Sell' for investors.