Shares of Clean Science and Technology Ltd pared 4% on Monday’s early trades amid reports of the company’s promoters selling a stake. At 01:07 PM, its shares were trading at ₹ 1425.00 apiece and had reached an intraday low of ₹ 1376.00 apiece on Monday’s early trades.
In a recent exchange filing, the company informed that a few members of its promoter group have conveyed their intention to divest a stake in the company to comply with the requirements of minimum public shareholding.
Currently, the promoters hold a 78.51% stake in the company, which is above the limit of 75%. Therefore they will have to sell a 3.51% stake, aggregating to 37,28,975 shares. These shares will be sold in the open market beginning from May 29, 2023, or onwards till June 30, 2023, or the actual date of completion of the sale, whichever is earlier.
Clean Science and Technology is among the leading chemical manufacturers globally. It manufactures functionally critical speciality chemicals such as performance chemicals (MEHQ, BHA, and AP), pharmaceutical intermediates (Guaiacol and DCC), and FMCG chemicals (4-MAP and Anisole).
With a market capitalization of ₹ 15,237 crores, Clean Science and Technology is a small-cap stock. It has a high return on equity of 33.19% and is almost debt-free. Its shares were trading at a price-to-earnings ratio (P/E) of 51.64, which is significantly higher than the industry P/E of 16.68, indicating that it might be overvalued as compared to its peers.
The company reported a 29.12% increase in its quarterly net profit to ₹ 80.53 crores in the January to March quarter (Q4FY23), against ₹ 62.37 crores in the corresponding quarter of the previous year (Q4FY22). Its revenue climbed 6% to ₹ 216.86 crores in Q4FY23 against ₹ 204.60 crores in Q4FY22.
For the year ended on March 31, 2023 (FY23), the company’s net profit came in at ₹ 295.18 crores, translating to an increase of 29.18% as compared to ₹ 228.50 crores reported in the previous year. It registered a 36.63% growth in its revenue to ₹ 935.79 crores for the entire year (FY23), against ₹ 684.89 crores reported in the previous year.
Written By Simran Bafna
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