Clean Science and Technology Ltd - The best in Chemical Industry
Clean Science and Technology Ltd. was incorporated in the year 2003 as a family-owned business enterprise. Adhering closely to our vision, they work on developing eco-friendly and sustainable manufacturing processes of specialty and fine chemicals, exporting to many countries across the world. With the primary aim of devising novel and clean processes for its products, they work extensively in developing better catalyst systems that are selective and cost-effective.
They are proud of their manufacturing facilities in Kurkumbh, MIDC (Maharashtra, India) that are automated to maintain high levels of accuracy and efficiency. Their Quality Control department is equipped with all the required testing facilities to seamlessly analyze incoming, in-process, and finished products.
Clean Science and Technology Ltd. has customers from Japan to the USA, making it a truly global organization.
FUNDAMENTALS:
> It is a newly listed Mid Cap company with a market cap of Rs.21,294 Cr.
> The ROCE and ROE is at 60% and 45% respectively which is marvelous, very few companies have this type of returns on their investments.
> Price to Book Value ratio is 39 times which makes it costly in terms of it’s financials.
> Stock P/E is at just 107 which makes the valuation very costly as compared to the industry P/E of just 27.
> OPM of the company is continuously growing and it is at 51% as per Mar 21 Balance Sheet. Again, the best in industry.
> Robust Topline and Bottomline, Topline has grown to almost 4 times at the same time bottom line has grown to almost 6 times in last 5 years. Tremendous growth opportunity is there with the company.
> Debts: This is a DEBT FREE company.
> Reserves: It has grown more than 5 times to Rs.529 Cr as per Mar 21 Balance Sheet.
> Promoters holding is at huge 94.65%, only 5.35% stocks are available in the market for retail as well as institutional investors.
TECHNICALS:
> After listing at 1700 levels in mid July 21 the stock has taken support at 1400 levels, it continuously making new high since then.
> On the chart stock is continuously in UPTREND since Aug 21.
Let’s look at some interesting facts about the company:
> The company have very strong board of directors.
> The company’s key material is Performance Products, these are the products that make a product perform. These are low volume & high margin products.
> The company have not just taken the market share from China but also it is exporting to China now a days. We all know it’s not at all easy to take market share from China.
> The company is also looking forward for capacity expansion aggressively.
PRODUCTS
a) MEHQ – Global Market size is 12,500 MT. The company is largest producer in the world as well as in India.
b) BHA - Global Market size is 9,000 MT. The company is largest producer in the world as well as in India.
c) GUAIACOL – Global Market size is 60,000 MT. The company is third largest producer in the world and second largest producer in India.
d) ANISOLE – Global Market size is 34,000 MT. The company is largest producer in the world as well as in India.
e) 4-MAP – Global Market size is 7,200 MT. The company is largest producer in the world as well as in India.
f) DCC - Global Market size is 7,000 MT. The company is amongst largest producer in the world and largest in India.
g) L-ASCORBYL - Global Market size is 9,000 MT. The company is second largest producer in the world as well as in India.
> Key Customers: Vinati Organics Lts, Gennex Laboratories Ltd, SRF Ltd, Nutriad and Bayer.
Though the PE and Price to Book ratios make it look costly but the company have huge potential to grow far from here.
Fresh Buy – On CMP i.e. Rs.2018
Old Buy – Hold
Target – Hold for long term gain of at least 3 times.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Your likes and comments motivate us to bring more profitable studies like this.
Happy Investing!
ShareMktSchool
They are proud of their manufacturing facilities in Kurkumbh, MIDC (Maharashtra, India) that are automated to maintain high levels of accuracy and efficiency. Their Quality Control department is equipped with all the required testing facilities to seamlessly analyze incoming, in-process, and finished products.
Clean Science and Technology Ltd. has customers from Japan to the USA, making it a truly global organization.
FUNDAMENTALS:
> It is a newly listed Mid Cap company with a market cap of Rs.21,294 Cr.
> The ROCE and ROE is at 60% and 45% respectively which is marvelous, very few companies have this type of returns on their investments.
> Price to Book Value ratio is 39 times which makes it costly in terms of it’s financials.
> Stock P/E is at just 107 which makes the valuation very costly as compared to the industry P/E of just 27.
> OPM of the company is continuously growing and it is at 51% as per Mar 21 Balance Sheet. Again, the best in industry.
> Robust Topline and Bottomline, Topline has grown to almost 4 times at the same time bottom line has grown to almost 6 times in last 5 years. Tremendous growth opportunity is there with the company.
> Debts: This is a DEBT FREE company.
> Reserves: It has grown more than 5 times to Rs.529 Cr as per Mar 21 Balance Sheet.
> Promoters holding is at huge 94.65%, only 5.35% stocks are available in the market for retail as well as institutional investors.
TECHNICALS:
> After listing at 1700 levels in mid July 21 the stock has taken support at 1400 levels, it continuously making new high since then.
> On the chart stock is continuously in UPTREND since Aug 21.
Let’s look at some interesting facts about the company:
> The company have very strong board of directors.
> The company’s key material is Performance Products, these are the products that make a product perform. These are low volume & high margin products.
> The company have not just taken the market share from China but also it is exporting to China now a days. We all know it’s not at all easy to take market share from China.
> The company is also looking forward for capacity expansion aggressively.
PRODUCTS
a) MEHQ – Global Market size is 12,500 MT. The company is largest producer in the world as well as in India.
b) BHA - Global Market size is 9,000 MT. The company is largest producer in the world as well as in India.
c) GUAIACOL – Global Market size is 60,000 MT. The company is third largest producer in the world and second largest producer in India.
d) ANISOLE – Global Market size is 34,000 MT. The company is largest producer in the world as well as in India.
e) 4-MAP – Global Market size is 7,200 MT. The company is largest producer in the world as well as in India.
f) DCC - Global Market size is 7,000 MT. The company is amongst largest producer in the world and largest in India.
g) L-ASCORBYL - Global Market size is 9,000 MT. The company is second largest producer in the world as well as in India.
> Key Customers: Vinati Organics Lts, Gennex Laboratories Ltd, SRF Ltd, Nutriad and Bayer.
Though the PE and Price to Book ratios make it look costly but the company have huge potential to grow far from here.
Fresh Buy – On CMP i.e. Rs.2018
Old Buy – Hold
Target – Hold for long term gain of at least 3 times.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Your likes and comments motivate us to bring more profitable studies like this.
Happy Investing!
ShareMktSchool