Clean Fino Chem, The Future Growth Engine Of Clean Science, Says Motilal Oswal

Motilal Oswal Report

Clean Science and Technology Ltd. is actively pursuing research and development and has entered the HALS series, which has an estimated global market size of $1 billion.

While the commercial production from Clean Fino Chem has commenced, the management expects HALS utilisation to reach 80% in three years.

The company is expected to generate Rs 6 billion in free cash flow during FY25-27, with a planned capex of Rs 5.5 billion for the same period. The company plans to finance this capex through internal accruals and is projected to maintain a net cash position in the future.

The stock is currently trading at ~43 times FY26E earnings per share of Rs 36 and ~32 times FY26E enterprise value/Ebitda.

We value the stock at 40 times Sep’26E EPS to arrive at our target price of Rs 1,580.

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