Clean Science and Technology (CLEAN IN) – Company Update – Valuation offers comfort; execution a key monitorable – Upgrade to ‘ACCUMULATE’
Published on 21 Oct 2026
Clean Science & Technology’s (CLEAN) valuation has moderated to ~20x FY28E EPS, offering an attractive entry point with growth visibility expected to improve across its core portfolio and new product segments. After subdued growth amid pricing pressure in legacy products and slower-than-expected capacity ramp-ups, the company is poised for a recovery driven by HALS scale-up and new product commercialization. The 5-year Kemin supply agreement strengthens visibility in antioxidants, while the Geneus Chem partnership provides access to advanced NOR-HALS products. Hydroquinone (HQ) and catechol offer incremental growth and backward-integration opportunities, with Performance Chemical 2 slated for commercialization in H2FY27. While execution remains key given the past scale-up challenges, we expect sales/EBITDA/PAT to grow at 23%/22%/27% (BBG: 23%/21%/22%) CAGR over FY26–29E. We upgrade the stock to ‘Accumulate’ from ‘HOLD’, retaining our TP of INR827.
