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

Stock Performance and Market Context

On 23 Feb 2026, Clean Science & Technology Ltd recorded an intraday price of Rs.707, establishing both a 52-week and all-time low. Despite a modest recovery today with a 1.12% gain, the stock remains below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

The stock’s volatility has been notably high, with an intraday weighted average price volatility of 72.27%, underscoring the unsettled trading environment. Over the past week, the stock declined by 3.35%, contrasting with a 0.14% gain in the Sensex. The one-month and three-month performances are more pronounced, with losses of 15.73% and 21.51% respectively, while the Sensex posted gains of 2.27% and a modest decline of 2.16% over the same periods.

Year-to-date, Clean Science & Technology Ltd has fallen 17.99%, significantly underperforming the Sensex’s 2.15% decline. The stock’s three-year and five-year returns stand at -48.91% and 0.00% respectively, compared to the Sensex’s robust 39.90% and 67.61% gains. Over a decade, the stock has not delivered any appreciable returns, remaining flat, while the Sensex surged by 256.22%.

Financial Metrics and Profitability Analysis

The company’s financial results for the quarter ending December 2025 reveal a challenging environment. Net sales dropped to Rs.219.67 crores, the lowest quarterly figure recorded, while profit after tax (PAT) declined by 30.8% to Rs.45.88 crores compared to the previous four-quarter average. Operating profit margins have remained subdued, with a five-year annual growth rate of just 2.36%, despite net sales growing at a 12.13% annual rate over the same period.

Return on capital employed (ROCE) for the half-year period is at a low 23.61%, indicating limited efficiency in generating returns from capital investments. Return on equity (ROE) stands at 17.7%, which, while respectable, is accompanied by a high price-to-book value ratio of 5, suggesting the stock is valued expensively relative to its book value. This valuation is, however, at a discount compared to the average historical valuations of its peers.

Profitability has also deteriorated over the past year, with profits falling by 5.8%, further compounding the stock’s underperformance. The company’s consistent underperformance against the BSE500 benchmark over the last three years highlights the severity of its challenges, with annual returns persistently below the broader market indices.

Valuation and Market Sentiment

The company’s Mojo Score currently stands at 28.0, with a Mojo Grade of Strong Sell as of 4 Aug 2025, downgraded from a Sell rating. This reflects a deteriorated outlook based on comprehensive financial and market data. The market capitalisation grade is rated at 3, indicating a relatively modest market cap within its sector.

Despite the negative trend, Clean Science & Technology Ltd benefits from a low average debt-to-equity ratio of zero, indicating a debt-free balance sheet that reduces financial risk. Institutional holdings are relatively high at 29.77%, suggesting that a significant portion of shares is held by investors with advanced analytical capabilities and resources.

Management efficiency remains a positive aspect, with a reported ROE of 22.95%, which is comparatively high. However, this has not translated into sustained stock price appreciation or improved financial performance over recent years.

Sector and Peer Comparison

Operating within the specialty chemicals sector, Clean Science & Technology Ltd’s performance contrasts sharply with broader sector trends. While the sector has shown resilience and moderate growth, the company’s stock has consistently underperformed, as evidenced by its negative returns over multiple time frames. The stock’s price action today was inline with the sector, but its longer-term trend remains weak.

Comparatively, the Sensex has delivered positive returns over one year (10.73%) and three years (39.90%), highlighting the stock’s relative underperformance. The lack of price recovery despite high management efficiency and a clean balance sheet points to deeper structural issues affecting the company’s market valuation.

Clean Science & Technology Ltd’s high price-to-book ratio juxtaposed with declining profits and sales suggests that market participants are pricing in expectations that have yet to materialise, contributing to the stock’s volatility and downward pressure.

Summary of Key Financial Indicators

Net Sales (Quarterly): Rs.219.67 crores (lowest recorded)

PAT (Quarterly): Rs.45.88 crores, down 30.8% vs previous 4Q average

ROCE (Half Year): 23.61% (lowest level)

ROE: 17.7% (valuation considered expensive at 5 Price to Book)

Debt to Equity: 0 (average)

Institutional Holdings: 29.77%

Mojo Score: 28.0 (Strong Sell, downgraded from Sell on 4 Aug 2025)

The stock’s persistent underperformance against benchmarks and peers, combined with declining profitability and sales, has culminated in the current all-time low price. While certain financial metrics such as ROE and debt levels remain favourable, these have not been sufficient to arrest the stock’s downward trajectory.

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