Current Rating and Its Significance
MarketsMOJO’s Strong Sell rating for Clean Science & Technology Ltd indicates a cautious stance for investors, suggesting 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 of the company’s investment appeal and risk profile.
Quality Assessment
As of 23 February 2026, Clean Science & Technology Ltd holds a good quality grade. This reflects the company’s operational strengths and business fundamentals, including its product offerings and market position within the specialty chemicals sector. Despite this, the quality grade alone is insufficient to offset other concerns, particularly in financial performance and market valuation.
Valuation Considerations
The stock is currently rated as very expensive in terms of valuation. With a price-to-book value of 5 and a return on equity (ROE) of 17.7%, the company’s shares trade at a premium compared to historical averages and peer valuations. This elevated valuation level suggests that the market has priced in significant growth expectations, which recent financial trends have struggled to justify. Investors should be wary of the risk that the stock’s price may not be supported by underlying earnings growth.
Financial Trend Analysis
The financial trend for Clean Science & Technology Ltd is currently negative. The latest quarterly results ending December 2025 reveal a decline in profitability, with the 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. Over the past five years, net sales have grown at a modest annual rate of 12.13%, while operating profit growth has been limited to 2.36% annually. These figures highlight challenges in sustaining robust earnings growth, which is a critical factor for long-term investor confidence.
Technical Outlook
The technical grade for the stock is bearish, reflecting recent price trends and market sentiment. As of 23 February 2026, the stock has experienced significant declines across multiple time frames: a 1-day drop of 3.52%, a 1-month decline of 16.77%, and a 1-year return of -45.67%. This persistent downward momentum indicates weak investor demand and suggests that the stock may continue to face selling pressure in the near term.
Performance Relative to Benchmarks
Clean Science & Technology Ltd has consistently underperformed the BSE500 benchmark over the last three years. The stock’s negative returns contrast sharply with broader market gains, underscoring the challenges faced by the company in delivering shareholder value. The year-to-date return of -18.90% and six-month decline of nearly 40% further reinforce the cautious outlook embedded in the Strong Sell rating.
Return on Capital and Profitability Metrics
The company’s return on capital employed (ROCE) stands at a low 23.61% for the half-year period, marking the lowest level recorded recently. This decline in capital efficiency, combined with shrinking profits, signals operational headwinds that may constrain future growth prospects. Investors should consider these metrics carefully when evaluating the stock’s potential for recovery or sustained performance.
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Implications for Investors
For investors, the Strong Sell rating on Clean Science & Technology Ltd serves as a warning signal. The combination of expensive valuation, deteriorating financial trends, and bearish technical indicators suggests that the stock may face continued downward pressure. While the company maintains a good quality grade, this is outweighed by the negative financial and market dynamics currently at play.
Investors should carefully weigh these factors against their risk tolerance and investment horizon. Those seeking exposure to the specialty chemicals sector might consider alternative stocks with stronger financial momentum and more attractive valuations. Meanwhile, existing shareholders may want to reassess their positions in light of the stock’s recent underperformance and challenging outlook.
Summary of Key Metrics as of 23 February 2026
- Market Capitalisation: Smallcap segment
- Mojo Score: 28.0 (Strong Sell)
- Price-to-Book Value: 5.0 (Very Expensive)
- ROE: 17.7%
- ROCE (Half Year): 23.61% (Lowest recent level)
- PAT Quarterly: ₹45.88 crores, down 30.8% vs previous 4Q average
- Net Sales Quarterly: ₹219.67 crores (Lowest recent level)
- 1-Year Stock Return: -45.67%
- 6-Month Stock Return: -39.74%
- 3-Month Stock Return: -23.15%
- YTD Return: -18.90%
These figures collectively underpin the Strong Sell rating and highlight the challenges Clean Science & Technology Ltd currently faces in delivering value to shareholders.
Looking Ahead
While the company’s fundamentals and quality remain decent, the prevailing valuation and financial trends suggest limited upside potential in the near term. Investors should monitor upcoming quarterly results and sector developments closely to gauge any shifts in the company’s trajectory. Until then, the Strong Sell rating reflects a prudent approach to this stock given the current data.
Conclusion
Clean Science & Technology Ltd’s Strong Sell rating by MarketsMOJO, last updated on 06 Nov 2025, is supported by current data as of 23 February 2026 that points to expensive valuation, negative financial trends, and bearish technicals despite good quality fundamentals. This comprehensive assessment advises investors to exercise caution and consider alternative opportunities within the specialty chemicals sector or broader market.
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