1 min read.Updated: 03 Sep 2021, 02:34 PM ISTLivemint
The Pune-based company manufactures functionally critical specialty chemicals such as pharmaceutical intermediates, FMCG chemicals
Shares of specialty chemical manufacturer Clean Science and Technology (CSTL) rose more than 3% to ₹1,619 per share on the BSE in Friday's afternoon deals after brokerage firm Anand Rathi initiated coverage on the stock with a ‘Buy’ rating. Clean science shares made its stock market debut in mid-July and the specialty chemical stock has appreciated over 75% from its issue price of ₹900.
Anand Rathi said that Clean Science has a steady revenue growth and improved and healthy operating profitability over the three fiscals through 2021. Enhanced capacities of key products such as mono methyl ether of hydroquinone (MEHQ), guaiacol and butylated hydroxyanisole (BHA) and steady demand for these products supported revenue growth amid the pandemic in fiscal 2021.
The Pune-based company manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals. Anand Rathi has initiated its coverage on the company with a Buy rating and a target price of ₹2,020 per share.
“The financial risk profile is robust marked by almost debt-free balance sheet, strong accretions and maintenance of surplus liquidity. Net-worth has remained strong and debt protection metrics continue to remain robust due to negligible debt and healthy profitability. Further company has surplus liquid investments of over ₹2,200 million," the brokerage added.
It believes that the company has an established market position and dominant presence in key specialty chemical products, and a diversified clientele. Additionally, Clean Science has a healthy operating efficiency and robust financial risk profile. As its products are used largely in manufacturing essential goods, hence it has seen limited impact of the Covid-19 pandemic, the note by Anand Rathi stated.
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