Current Rating and Its Significance
MarketsMOJO’s Strong Sell rating for Clean Science & Technology Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and its peers. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment, helping investors understand the risks and challenges currently facing the company.
Quality Assessment
As of 11 February 2026, Clean Science & Technology Ltd holds a good quality grade. This suggests that the company maintains a reasonable standard in operational efficiency and business fundamentals. However, despite this positive aspect, the company’s growth trajectory has been modest. Over the past five years, net sales have grown at an annualised rate of 12.13%, while operating profit growth has lagged significantly at just 2.36% per annum. This slow expansion in profitability raises concerns about the company’s ability to generate sustainable earnings growth in the near term.
Valuation Considerations
The valuation grade for Clean Science & Technology Ltd is currently assessed as very expensive. The stock trades at a price-to-book value of 5.6, which is notably high relative to its sector peers. This elevated valuation is difficult to justify given the company’s recent financial performance and profitability challenges. The return on equity (ROE) stands at 17.7%, which, while respectable, does not sufficiently support the premium valuation. Investors should be wary of paying a high price for a stock that is experiencing declining profits and underwhelming growth.
Financial Trend and Profitability
The financial trend for Clean Science & Technology Ltd is currently negative. The latest quarterly results for December 2025 reveal a significant decline in profitability, with profit after tax (PAT) falling by 30.8% to ₹45.88 crores compared to the previous four-quarter average. Net sales for the quarter also hit a low of ₹219.67 crores, reflecting weakening demand or operational challenges. Additionally, the company’s return on capital employed (ROCE) has dropped to 23.61%, its lowest level in recent periods, signalling deteriorating capital efficiency.
Technical Analysis
From a technical perspective, the stock is rated bearish. Price action over recent months has been weak, with the stock declining by 1.2% on the latest trading day and showing a downward trend across multiple time frames. Specifically, the stock has lost 7.66% over the past month, 15.21% over three months, and a steep 33.32% over six months. Year-to-date, the stock is down 10.31%, and over the last year, it has delivered a negative return of 42.65%. This consistent underperformance against the benchmark BSE500 index over the past three years further reinforces the bearish technical outlook.
Performance Relative to Market and Peers
Clean Science & Technology Ltd’s stock has consistently underperformed its benchmark and sector peers. Over the last year, the stock’s return of -44.02% contrasts sharply with the broader market’s performance. This underperformance is compounded by a 5.8% decline in profits over the same period, highlighting the company’s struggles to maintain profitability amid challenging market conditions. Investors should consider these factors carefully when evaluating the stock’s potential for recovery or further decline.
Summary for Investors
In summary, the Strong Sell rating reflects a combination of high valuation, negative financial trends, bearish technical signals, and only moderate quality metrics. For investors, this rating suggests caution and the need for thorough due diligence before considering exposure to Clean Science & Technology Ltd. The current market environment and company fundamentals indicate that the stock may face continued headwinds, making it a less attractive option compared to other opportunities within the specialty chemicals sector or broader market.
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Outlook and Considerations
Looking ahead, Clean Science & Technology Ltd faces significant challenges in reversing its current negative financial trend. The company’s slow growth in sales and operating profit, combined with a high valuation and bearish technical indicators, suggest limited upside potential in the near term. Investors should monitor upcoming quarterly results closely, particularly for signs of stabilisation in profitability and sales volumes.
Moreover, the company’s ability to improve capital efficiency and manage costs will be critical to restoring investor confidence. Given the current Strong Sell rating, it is advisable for investors to approach this stock with caution and consider alternative investments with stronger fundamentals and more favourable valuations.
Key Metrics at a Glance (As of 11 February 2026)
- Market Capitalisation: Smallcap
- Mojo Score: 28.0 (Strong Sell)
- Price-to-Book Value: 5.6 (Very Expensive)
- Return on Equity (ROE): 17.7%
- Return on Capital Employed (ROCE): 23.61% (Lowest recent level)
- 1-Year Stock Return: -42.65%
- 6-Month Stock Return: -33.32%
- Quarterly PAT Decline: -30.8%
- Net Sales (Quarterly): ₹219.67 crores (Lowest recent level)
These figures underscore the challenges the company currently faces and provide context for the Strong Sell rating assigned by MarketsMOJO.
Investor Takeaway
For investors, the Strong Sell rating serves as a warning signal to reassess exposure to Clean Science & Technology Ltd. While the company maintains some operational quality, the combination of expensive valuation, deteriorating financial performance, and negative technical momentum suggests that the stock is likely to remain under pressure. Prudent portfolio management would involve considering risk mitigation strategies or reallocating capital to more promising opportunities.
Continued monitoring of the company’s quarterly results and market developments will be essential for those holding the stock or contemplating entry. The current data as of 11 February 2026 provides a clear snapshot of the company’s position, enabling informed decision-making based on the latest available information.
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