Fundamental Analysis- Clean Science and Technology IPO

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Key Financial Highlights of Clean Science and Technology

  • Robust Financial Performance: The company’s total revenue increased by 25% in FY21 to Rs 538.07 crore from Rs 430.17crore for FY20. PAT posted for FY21 was Rs 198 crore in FY21 as against Rs 139 crore in FY20.
  • The Issuer posted strong EBITDA and net margins as plotted in the chart.
  • RoNW for FY21 is 37%. The Issuer has negligible debt on the books.
  • With an EPS of 18.68 per share, the P/E is 48.18 times calculated at the upper price band of Rs 900 per share. The average sector P/E is 55.38x indicating the Issue to be fully priced.
  • P/BV is 17.71x at an upper price band of Rs 900 per share.

Business analysis of Clean Science and Technology IPO

Chart showing margins

Valuation Parameters

Valuation Parameters EPS P/E NAV P/BV
18.68 48.18 50.81 17.71

Peers Key Financial Metrics

Peer Comparison Total Income (FY21) EPS P/E RoNW
Vinati Organics 980.1 26.2 68.43 17.45%
Fine organics 1150.3 39.25 75.93 16.45%
Atul 3834.5 221.17 40.01 17.11%
Camlin Fine 1192.1 4.13 47.65 9.16%
SRF Limited 8454.5 205.54 34.37 17.47%
Navin Fluorine 1258.4 52.03 64.43 15.76%
PI Industries 4701.9 49.92 56.83 13.82%
Clean Science 538.1 18.68 48.18 36.76%
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Investment Strategy- Subscribe

Clean Science and Technology Company is a global company focused on manufacturing speciality chemicals. The company has a niche market segment. Issuer’s financial performance is robust with strong margins and low debt levels. Hence, one may subscribe to the IPO.

RHP of Clean Science and Technology IPO

 


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About CA Priyanka Choudhary Jain 99 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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