Price Performance and Market Context
Clean Science & Technology’s stock closed just 0.44% above its 52-week low of ₹877.85, signalling proximity to historic lows. The share price has declined for four consecutive trading sessions, resulting in a cumulative return of -3.04% over this period. On the day of reporting, the stock recorded a fall of 1.63%, underperforming the Sensex, which moved down by 0.15%. Over the past week, the stock’s return was -2.17%, compared with the Sensex’s -0.45% movement.
Monthly and quarterly returns further illustrate the downward trend, with the stock posting -5.82% over one month and -26.26% over three months. These figures contrast sharply with the Sensex’s respective performances of -0.28% and +1.71% during the same periods. The year-to-date return for Clean Science & Technology stands at -38.42%, while the Sensex has advanced by 8.06%.
Longer-term data reveals a consistent pattern of underperformance. Over one year, the stock has delivered a return of -40.34%, whereas the Sensex has gained 5.30%. The three-year return for Clean Science & Technology is -42.08%, in stark contrast to the Sensex’s 37.65% growth. Over five and ten years, the stock has shown no appreciable gains, remaining flat, while the Sensex has recorded gains of 79.80% and 230.86% respectively.
Technical Indicators and Moving Averages
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a prevailing bearish sentiment among market participants and a lack of upward momentum in the near term.
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Financial Performance Overview
Recent quarterly results indicate a contraction in profitability. The company reported a Profit After Tax (PAT) of ₹55.43 crores, representing a decline of 17.4% compared to the average of the previous four quarters. Earnings before interest, depreciation, taxes and amortisation (PBDIT) stood at ₹87.09 crores, marking the lowest level recorded in recent periods. The operating profit margin relative to net sales also reached a low of 35.61% in the quarter under review.
Despite these figures, the company’s operating profit has exhibited a compound annual growth rate of 5.93% over the last five years, indicating some degree of long-term growth, albeit modest. Profit growth over the past year has been recorded at approximately 3%, a figure that contrasts with the significant negative returns experienced by the stock price during the same timeframe.
Valuation and Shareholder Trends
Clean Science & Technology’s return on equity (ROE) is reported at 17.7%, which is relatively high and indicative of efficient capital utilisation. However, the stock’s price-to-book value ratio stands at 6.3, suggesting a valuation that may be considered elevated when compared to historical averages of its peer group. The company’s price-to-earnings-to-growth (PEG) ratio is noted at 12.1, reflecting the relationship between valuation and earnings growth.
Promoter shareholding has experienced a notable reduction, with a decrease of 24% over the previous quarter. Currently, promoters hold 50.97% of the company’s equity. This decline in promoter stake may be interpreted as a shift in confidence levels regarding the company’s prospects.
Sector and Benchmark Comparison
Within the specialty chemicals sector, Clean Science & Technology has underperformed relative to the broader BSE500 index in each of the last three annual periods. The stock’s returns have consistently lagged behind sector averages and market benchmarks, underscoring the challenges faced by the company in maintaining competitive performance.
The company’s debt-to-equity ratio remains low, averaging zero, which indicates a conservative capital structure with minimal reliance on external borrowings. This financial position may provide some stability amid the current market conditions.
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Summary of Current Position
Clean Science & Technology’s stock is currently positioned near historic lows, reflecting a period of sustained price weakness and underperformance relative to key indices and sector peers. The company’s recent financial results show contraction in quarterly profits and operating margins, while longer-term growth in operating profit remains modest. Valuation metrics suggest a relatively high price-to-book ratio, and promoter shareholding has declined notably in recent months.
Technical indicators confirm the stock’s position below all major moving averages, reinforcing the prevailing downward momentum. Despite a strong return on equity and a low debt profile, the stock’s performance over multiple time horizons has lagged behind market benchmarks, highlighting the challenges faced by the company in the current environment.
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