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

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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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Motilal Oswal Clean Science and Technology Company Update.pdf

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