Clean Science and Technology Share Price Falls 7% After Q1 Results and Stake Sale Overhang

Market Performance

Clean Science and Technology shares plunged sharply on Friday, July 18 after disappointing Q1 results and news of a potential promoter stake sale, triggering investor concerns.

• The stock dropped by 7% intraday.
• It is currently trading at ₹1,350, down 6.6%.
• Despite the decline, the stock is above its IPO price of ₹900 but below the 52-week high of ₹1,690.

This decline follows mixed June quarter earnings and news of a possible promoter stake sale.

Main News

Although Clean Science and Technology reported steady quarterly growth, investor sentiment declined due to three main factors:

• A drop in EBITDA margin
• Management's cautious tone during the earnings call
• Discussion around a potential minority stake sale by promoters

These factors triggered a swift negative market reaction.

Company Details

Clean Science and Technology Ltd. is a leading specialty chemicals manufacturer.

In the June quarter, the company highlighted its strength in new product launches, with over 25% of revenue coming from recently introduced offerings.

Management also noted market share gains, pointing to operational resilience despite margin compression.

Financial Performance Summary

Revenue

• Revenue for Q1 stood at ₹240 crore
• This marks an 8% increase year-on-year compared to the same quarter last year

EBITDA

• EBITDA grew by 5% YoY, though the exact figure was not disclosed in the filing

EBITDA Margins

• Margins fell by 100 basis points
• EBITDA margin declined from 42.8% to 41.7%

Net Profit

• Net profit rose 6% YoY, reflecting stable operational performance despite margin pressures

Promoter Stake and Management Commentary

The promoters currently hold a 74.97% stake in the company.

During the Q1 earnings call, the management stated:

• They are evaluating a minority stake sale
• The move is aimed at family estate planning and management
• This has created an overhang on investor sentiment

Short-term commentary has pressured the share price despite a positive outlook.

Summary of the Article

Shares fell 7% on July 18 after Q1 results and stake sale concerns emerged.

Even though the company posted an 8% revenue rise and a 6% net profit increase, the combination of margin dip and stake sale news directly led to the stock's decline.

With over 25% of revenue from new launches and ongoing market share gains, Clean Science remains a main player in the specialty chemicals sector.

Cautious investor sentiment drove shares down to ₹1,350.