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Investing.com - ICICI Securities downgraded Clean Science & Technology (NSE:CLEAN) from Hold to Reduce and lowered its price target to INR 1,330 from INR 1,360, citing disappointing growth and weak demand for new products.
The company’s EBITDA grew only 5.5% year-over-year despite favorable conditions including lower input prices and HALS (Hindered Amine Light Stabilizers) offtake, according to the research firm’s analysis. While established products revenue increased by 8% year-over-year, overall sales were hampered by weak demand for new product lines.
HALS volumes reached just 580 tonnes in Q1FY26, significantly below the company’s full-year guidance of 4,000 tonnes for FY26. Clean Science is now planning to develop more complex HALS series with over twice the realization potential of current products.
The company is in the process of ramping up or commissioning several new products including DHDT, BHT, barbituric acid, and two performance products, which are expected to accelerate revenue growth in coming quarters.
ICICI Securities reduced its FY26-27E earnings per share estimates by 2-3% and maintained a FY27E price-to-earnings multiple of 35x. The research firm also noted that Clean Science promoters have announced plans to reduce their equity stake by 24%, which would bring their holding down to 51% from the current 75%.
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