Stock Performance and Market Context
On 1 Feb 2026, Clean Science & Technology Ltd's stock opened with a gap down of 3%, underperforming its sector by 3.96%. The share price touched an intraday low of Rs.825, representing a 4.15% decline from the previous close. This new low also stands as the company’s all-time lowest trading price. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex opened 119.19 points higher and was trading at 82,547.84, up 0.34% on the day. The benchmark index remains 4.37% shy of its 52-week high of 86,159.02. Mega-cap stocks are leading the market rally, while the Sensex trades below its 50-day moving average, which itself remains above the 200-day moving average, indicating a mixed but cautiously optimistic market environment.
Long-Term Price Trend and Relative Performance
Over the past year, Clean Science & Technology Ltd has experienced a significant decline of 39.08%, markedly underperforming the Sensex, which has gained 7.53% over the same period. The stock’s 52-week high was Rs.1,599, highlighting the extent of the recent price erosion. This persistent underperformance has been consistent over the last three years, with the stock lagging behind the BSE500 index in each annual period.
Financial Metrics and Profitability Analysis
The company’s financial results for the quarter ending December 2025 reveal several areas of concern. Net sales for the quarter stood at Rs.219.67 crore, the lowest recorded in recent periods. Profit after tax (PAT) declined sharply by 30.8% to Rs.45.88 crore compared to the previous four-quarter average. Return on capital employed (ROCE) also reached a low of 23.61%, reflecting reduced efficiency in generating returns from capital investments.
Despite these setbacks, Clean Science & Technology Ltd maintains a return on equity (ROE) of 17.7%, which is relatively high. However, this is accompanied by a price-to-book value ratio of 6.1, indicating a valuation that is considered expensive relative to its book value. The company’s PEG ratio stands at 11.7, suggesting that the stock price is high compared to its earnings growth rate, which has been modest at 3% over the past year.
Growth and Efficiency Considerations
Operating profit growth has been subdued, with an annualised rate of just 5.93% over the last five years. This slow growth trajectory has contributed to the stock’s current rating of Strong Sell, upgraded from Sell on 4 Aug 2025, reflecting deteriorating fundamentals. The company’s market capitalisation grade is rated at 3, indicating a mid-tier market cap within its sector.
Balance Sheet and Institutional Holding
On a positive note, Clean Science & Technology Ltd exhibits strong management efficiency, with a high ROE of 22.95%. The company maintains a low average debt-to-equity ratio of zero, signalling a debt-free balance sheet which reduces financial risk. Institutional investors hold 29.77% of the company’s shares, suggesting that a significant portion of the stock is held by entities with the resources to analyse company fundamentals thoroughly.
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Valuation and Comparative Analysis
While the stock’s valuation appears expensive on a price-to-book basis, it is trading at a discount relative to its peers’ average historical valuations. This discrepancy reflects the market’s cautious stance on the company’s growth prospects and recent financial performance. The combination of a high PEG ratio and subdued profit growth has weighed on investor sentiment, contributing to the stock’s decline to its current 52-week low.
Sector and Industry Positioning
Operating within the Specialty Chemicals industry, Clean Science & Technology Ltd faces competitive pressures that have influenced its financial outcomes. The sector itself has seen mixed performance, with some companies benefiting from demand growth while others contend with pricing pressures and input cost volatility. The company’s relative underperformance against sector benchmarks highlights challenges in maintaining market share and profitability.
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Summary of Key Metrics
To summarise, Clean Science & Technology Ltd’s recent stock price decline to Rs.825 reflects a combination of subdued sales, declining profits, and valuation concerns. The company’s financial indicators such as PAT, ROCE, and operating profit growth have shown downward trends, while its valuation metrics remain elevated relative to earnings growth. Despite a strong ROE and a debt-free balance sheet, the stock has consistently underperformed the broader market and its sector peers over the past three years.
These factors collectively underpin the current market assessment of the stock as a Strong Sell, with a Mojo Score of 28.0, downgraded from Sell in August 2025. The stock’s performance today, including a 3.04% day decline and trading below all major moving averages, further emphasises the challenges faced by the company in regaining investor confidence.
Market Outlook and Broader Implications
While the Sensex and mega-cap stocks have shown positive momentum, Clean Science & Technology Ltd’s share price trajectory diverges from this trend. The stock’s underperformance highlights the differentiated impact of sector-specific and company-specific factors within the broader market context. Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely as it navigates this period of subdued performance.
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