Recent Market Performance and Price Trends
On the trading day, Clean Science & Technology Ltd’s share price fell by 1.48%, underperforming the Sensex which declined by 0.83%. This drop followed a two-day rally, signalling a reversal in short-term momentum. The stock also lagged behind its Specialty Chemicals sector, which outperformed by 1.07% on the same day.
Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish trend. Over the past month, the stock has declined by 4.11%, compared to a modest 0.99% fall in the Sensex. The three-month performance is notably weaker, with a drop of 18.62% against a 3.04% gain in the Sensex.
Long-Term Underperformance Against Benchmarks
Clean Science & Technology Ltd’s challenges extend beyond recent months. Over the past year, the stock has delivered a negative return of 39.50%, while the Sensex gained 7.82%. The disparity widens over longer periods: a three-year decline of 41.33% contrasts sharply with the Sensex’s 40.66% rise, and over five and ten years, the stock has remained flat at 0.00%, whereas the Sensex surged 72.72% and 237.91% respectively.
This persistent underperformance is also evident when compared to the BSE500 index, with the stock lagging behind in each of the last three annual periods. Year-to-date, the stock has fallen 2.46%, slightly worse than the Sensex’s 1.13% decline.
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Financial Metrics and Profitability Analysis
The company’s quarterly financial results for September 2025 reveal a decline in profitability. Profit After Tax (PAT) stood at ₹55.43 crores, down 17.4% compared to the previous four-quarter average. Operating profit (PBDIT) reached a low of ₹87.09 crores, with the operating profit to net sales ratio falling to 35.61%, the lowest recorded in recent quarters.
Despite these setbacks, Clean Science & Technology Ltd maintains a relatively high Return on Equity (ROE) of 17.7%, indicating efficient utilisation of shareholder funds. However, this is accompanied by a high valuation multiple, with a Price to Book Value ratio of 6.2, suggesting the stock is expensive relative to its book value. The PEG ratio stands at 11.8, reflecting a disconnect between price and earnings growth.
Shareholder Confidence and Promoter Activity
Promoter shareholding has decreased by 24% over the previous quarter, now representing 50.97% of the company’s equity. This reduction in promoter stake may be interpreted as a sign of diminished confidence in the company’s near-term prospects.
Clean Science & Technology Ltd’s Mojo Score has deteriorated to 28.0, with a corresponding Mojo Grade of Strong Sell as of 4 August 2025, downgraded from a Sell rating. The company’s Market Cap Grade is rated 3, reflecting its relative size and market capitalisation within the sector.
Sector and Industry Context
Operating within the Specialty Chemicals industry, Clean Science & Technology Ltd faces a competitive environment where valuation and growth metrics are critical. The stock’s current discount to peer average historical valuations contrasts with its high Price to Book Value, highlighting valuation complexities within the sector.
The company’s low average Debt to Equity ratio of zero indicates a conservative capital structure, which may provide some financial stability amid market pressures.
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Summary of Key Challenges
Clean Science & Technology Ltd’s stock has reached an unprecedented low, reflecting a combination of subdued long-term growth and recent declines in profitability. Operating profit has grown at a modest annual rate of 5.93% over the past five years, which has not translated into sustained share price appreciation.
The company’s financial results indicate pressure on margins and earnings, while the reduction in promoter holdings adds to the cautious sentiment. The stock’s valuation metrics suggest it remains expensive relative to earnings growth, despite trading near historic lows.
Overall, the stock’s performance over multiple time horizons highlights a pattern of consistent underperformance relative to market indices and sector peers.
Additional Financial Strengths
Despite the challenges, Clean Science & Technology Ltd demonstrates high management efficiency, with an ROE of 22.95% reported in recent assessments. The company’s negligible debt levels further contribute to its financial stability, providing a solid foundation amid market volatility.
Conclusion
The all-time low in Clean Science & Technology Ltd’s share price marks a significant milestone in its market journey, underscoring the impact of sustained underperformance and valuation pressures. The stock’s current position reflects a complex interplay of financial results, market sentiment, and shareholder behaviour within the Specialty Chemicals sector.
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