Prabhudas Lilladher upgrades Clean Science to Accumulate, keeps Rs 827 target

what happened

According to Prabhudas Lilladher, as reported by TradingView, Clean Science and Technology (CLEAN) now trades at roughly 20 times its FY28 forecast earnings per share, which the broker sees as an attractive entry point. Growth has recently been held back by pricing pressure on legacy products and capacity ramp-ups that have been slower than expected.

The broker expects a recovery driven by the scale-up of HALS production and the launch of new product lines. A five-year supply agreement with Kemin strengthens the company's position in antioxidants, while the partnership with Geneus Chem gives access to advanced NOR-HALS products. Hydroquinone and catechol are seen adding incremental growth and backward-integration options, and Performance Chemical 2 is slated for commercialization in the second half of FY27.

The analysts forecast sales, EBITDA and profit after tax growing at compound annual rates of 23%, 22% and 27% over FY26 to FY29. Execution remains the key risk given the company's past scale-up difficulties. The rating has been raised to Accumulate, with the target price unchanged at Rs 827.

why it matters

This is a single broker's research on a small chemicals company, so its impact on the broader market is limited. Investors typically check such forecasts against quarterly results and capacity commissioning timelines, since those are what confirm or challenge the expected growth.

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