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Investing.com - Axis Capital (NYSE:AXS) Limited has upgraded Clean Science & Technology (NSE:CLEAN) stock rating from Add to Buy, while slightly lowering its price target to INR1,470.00 from INR1,550.00.
The upgrade comes after a significant 21% decline in the stock over the past month, which Axis Capital attributes to an overhang from the promoter group’s stake sale of approximately 24%. This decline occurred while the broader index remained largely flat.
Axis Capital expressed optimism about Clean Science & Technology’s long-term growth prospects as the company expands beyond its current global leadership in core products like MEHQ and BHA. The expansion includes HALS, which represents a INR100 billion global market growing at over 8% CAGR, and performance chemicals with two new products expected to be commissioned in FY26.
These new projects are expected to help Clean Science & Technology more than double its EBITDA over FY25-29E, implying a CAGR of over 20%. The new price target of INR1,470 is based on 35x September 2027 estimated earnings per share.
Axis Capital identified increased competitive intensity in the company’s core products (MEHQ, BHA) as the key risk to its investment thesis.
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