Broker’s call: Clean Science & Technology (Buy)

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Target: ₹1,703

CMP: ₹1,415.20

Clean Science & Technology Ltd (CSTL) is a leading specialty chemical company operating in over 35 countries, with more than 60 per cent of its revenue generated from exports.

The company has strong technical capabilities, sustainable catalytic processes, and effective backward integration, which allows it to deliver competitively priced products with superior margins while nurturing long-term client relationships.

CSTL has strategically diversified its product mix through significant investments in research and development and the execution of capital expenditure initiatives, highlighted by the establishment of its fourth manufacturing unit under the new subsidiary, Clean Fino-Chem Ltd (CFCL).

With a solid balance sheet, the company is well-equipped to pursue further expansion through internal accruals, reinforcing its financial strength and growth potential.

With the company’s strong R&D capabilities and its entry into the HALS series, which has an estimated global market size of USD 1bn, along with the commencement of commercial production from CFCL, management anticipates HALS utilisation to reach 80 per cent within three years.

Based on these factors, we estimate a target price of ₹1,703. This valuation is derived using a P/E ratio of 41x, applied to the projected FY27 EPS of ₹41.54.