Clean Science & Technology Ltd Hits All-Time Low Amid Prolonged Underperformance

Stock Performance and Market Context

On 1 Feb 2026, Clean Science & Technology Ltd recorded a day decline of 0.53%, underperforming the Sensex which fell marginally by 0.02%. The stock’s underperformance extends beyond a single day, with a one-week loss of 2.77% compared to the Sensex’s gain of 0.88%. Over the past month, the stock declined by 3.35%, slightly worse than the Sensex’s 2.86% fall. The disparity becomes more pronounced over longer periods: a three-month drop of 17.71% versus the Sensex’s 2.54% decline, and a one-year plunge of 42.00% while the Sensex gained 7.16%. Year-to-date, the stock has fallen 5.37%, lagging behind the Sensex’s 3.48% decrease.

Notably, Clean Science & Technology Ltd has failed to generate positive returns over the last three and five years, with a three-year loss of 39.66% contrasting sharply with the Sensex’s 38.25% gain and a five-year flat performance against the Sensex’s 77.71% rise. Over a decade, the stock has remained stagnant, while the Sensex surged by 230.74%.

The stock’s volatility has been exceptionally high, with an intraday volatility of 112.89% calculated from the weighted average price, indicating significant price swings within trading sessions. Additionally, Clean Science is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.

Financial Metrics and Valuation

The company’s recent quarterly results highlight several areas of concern. Net sales for the quarter stood at Rs.219.67 crores, the lowest recorded in recent periods. Profit after tax (PAT) declined sharply by 30.8% to Rs.45.88 crores compared to the previous four-quarter average. Return on capital employed (ROCE) also reached a low of 23.61%, indicating reduced efficiency in generating returns from capital investments.

Despite these setbacks, Clean Science & Technology Ltd maintains a relatively high return on equity (ROE) of 22.95%, reflecting management’s ability to generate profits from shareholders’ equity. However, this has not translated into positive stock performance or valuation uplift.

The stock’s valuation remains elevated with a price-to-book (P/B) ratio of 6.1, suggesting that the market prices the company at a premium relative to its book value. This premium is notable given the company’s recent financial performance and contrasts with its peers’ average historical valuations, where Clean Science trades at a discount.

Further, the company’s price-to-earnings-to-growth (PEG) ratio stands at 11.7, signalling a high valuation relative to earnings growth, which has been modest at an annual rate of 5.93% over the past five years.

Long-Term Growth and Market Position

Over the last five years, Clean Science & Technology Ltd’s operating profit has grown at a compounded annual rate of just 5.93%, reflecting subdued expansion in its core business. This slow growth trajectory has contributed to the stock’s inability to keep pace with broader market indices and sector peers.

The company’s market capitalisation grade is rated at 3, indicating a mid-tier market cap status within its sector. Institutional investors hold a significant 29.77% stake, suggesting that entities with advanced analytical capabilities maintain exposure despite the stock’s recent performance.

Debt levels remain minimal, with an average debt-to-equity ratio of zero, underscoring a conservative capital structure that limits financial risk but has not been sufficient to offset other performance pressures.

Comparative Performance and Ratings

Clean Science & Technology Ltd’s performance has consistently lagged behind the benchmark BSE500 index, underperforming in each of the last three annual periods. This trend is reflected in the stock’s Mojo Score of 28.0, which corresponds to a Strong Sell grade as of 4 Aug 2025, an upgrade from a previous Sell rating. This grading reflects the company’s deteriorated financial metrics and market performance.

Sector-wise, the specialty chemicals industry has seen varied performances, but Clean Science’s returns have been notably weaker than sector averages. The stock underperformed its sector by 1.29% on the latest trading day, further emphasising its relative weakness.

Despite the challenges, the company’s low leverage and high management efficiency, as indicated by its ROE, remain positive attributes. However, these factors have not been sufficient to arrest the stock’s decline or improve its market standing.

Summary of Key Indicators

To summarise, Clean Science & Technology Ltd’s stock has reached an all-time low of Rs.827 amid a backdrop of sustained underperformance, high volatility, and subdued financial growth. The company’s recent quarterly results show declines in net sales and profits, while valuation metrics suggest a premium pricing that is not supported by earnings growth. Institutional holdings remain significant, and the company maintains a conservative debt profile, but these factors have not translated into positive market momentum.

The stock’s Strong Sell rating and low Mojo Score reflect the market’s cautious stance, with the company’s performance trailing both sector peers and broader indices over multiple time horizons.

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