This post on Clean Science and Technology IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Clean Science and Technology IPO or not.

Related Posts : Clean Science and Technology IPO Review

Clean Science and Technology IPO : Grey Market Premium etc.

  • Rs. 07-07-21 GMP 470

Subscription: Clean Science and Technology IPO ( x times)

Day / X timesQIBNIIRetailTotal 
Day 3159.93211.129.295.54
Day 22.174.615.554.38
Day 10.012.192.541.74
Total Retail Applications ~ 2694299
Appl wise Retail7.17 x

Consolidated Brokerage Views on Clean Science and Technology IPO

Aditya Birla Capital :”Subscribe: CSTL is the leading manufacturer in several of its products using internally developed processes and catalysts. It has joined the sustainable chemistry bandwagon by eliminating the wastes and discharges from its manufacturing facilities. It enjoys healthy return ratios and margins through the creation of strong entry barriers. The IPO is valued at 48.2x FY21 EPS which we believe is reasonable when compared to the valuations of several of the specialty chemical companies in the listed universe. We assign a ‘Subscribe’ rating on the issue.”

Anand Rathi: “The company possesses a healthy balance sheet and robust return ratios profile (FY21 RoE at 36.8 per cent). We recommend a ‘Subscribe’ rating to this IPO.”

Angel Broking: “CSTL’s revenue hasgrown at CAGR of 9.1% over FY19-21 on the back of strong 22% top line growth in FY21 despite the Covid 19 crisis. Moreover the company has posted strong EBITDA and PAT CAGR of 23.6% and 26.3% respectively during the same period. Given strong financial performance, industry leading margins and returns ratios CSTL should be able to command a premium to peers.We believe that the India specialty chemical industry is going to be one of the biggest beneficiaries of shifting of supply chains post the Covid-19 pandemic. Given CSTL’s financial performance, industry leading returns ratios and favorable outlook for the industry we recommend “SUBSCRIBE” to the issue.”

Capital Market : ” Score 46/100 ; At the higher price band of R 900, the offer is made at around 48.2 times its EPS of R 18.7 for the period ended March 31, 2021, on a post-issue equity share capital of R 10.62 crore of face value of R 1 each. Listed industry peers of the company are Vinati Organics, Fine Organics Industries, Atul, Camlin Fine Sciences, SRF, Navin Flourine International and PI Industries. In comparison Vinati Organics trades at 77.4 times its FY2021 EPS of R 26.2 at the current market price of R 2028, Fine Organics Industries trades at 75 times its FY2021 EPS of Rs 39.2 at the current market price of Rs 2944, Atul trades at 42.2 times its FY2021 EPS of Rs 221.6 at the current market price of R 9350, Camlin Fine Sciences trades at 48.6 times its FY2021 EPS of Rs 4 at the current market price of Rs 194, SRF trades at 37 times its FY2021 EPS of Rs 202.2 at the current market price of Rs 7487, NavinFlourine International trades at 76.1 times its FY2021 EPS of Rs 49.9 at the current market price of Rs 3799 and PI Industries trades at 62.2 times its FY2021 EPS of R 48.7 at the current market price of Rs 3025 . “

Choice Broking: “Subscribe for Long Term. Fundamentals fully priced in demanding valuation.”

HEM Securities: “we recommend “Subscribe” on issue both for listing gain & long term purpose.”

Geojit Financial: At the upper price band of Rs.900, CSTL is available at a P/E of 48x (FY21) which appears to be fully priced in. However, we assign a “Subscribe” rating for the issue on a long-term basis considering its technical expertise, process innovation, consistent focus on R&D, positive industry outlook, superior margin profile and healthy return ratios.”

Motilal Oswal “Largest manufacturer of multiple green chemicals: CSTL has created niche by developing clean-technology that uses non-toxic raw materials with lower effluents, leading to cost efficiencies. It has unique ability to produce through catalytic transformation (rare among Indian chemical companies) and is the only company globally to use vapor phase process for Anisole (used as a key raw material for all its other products). We believe that the market would like to give premium valuation to such emerging niche stories. We recommend Subscribe.”

Nirmal Bang: “The company has grown at a CAGR of 29% over FY18-21 which is fastest among the peer. The company started using anisole captively in FY18 and later introduced in-house developed vapor-phase technology in FY19. Both the factors helped the company in improving in margins. Further in FY20, it increased the capacity of anisole by 3x. the benefit of which was seen in FY21 as well. From FY18, CSTL managed to increase its EBITDA margins from 30.5% to 50.5% in FY21 and the management believes that there is no one-off in these margins, and are likely to continue in future as well. CSTL stands out among the peer group with robust ROE, fastest sales growth and one of the highest margins. Considering the healthy balance sheet, robust revenue growth and strong cash flow generations we have a positive view on the company. At upper band of Rs 900, the PE comes to 48.2x FY21 earnings, which looks attractive. We recommend “Subscribe”.”

SMC: “Score 2.5/5 ; Clean Science and Technology is known for an established market position and dominant presence in key specialty chemical products, well-diversified clientele, and application of the products largely in industries manufacturing essentials which limits impact of COVID-19 pandemic. As the issue is OFS, the entire offer money will go to selling shareholders. However, considering virtual monopoly in the field of its operations for many products, a long term investor may opt the issue”

SP Tulsiyan Website: “We recommend ‘subscribe’ to the IPO as company fundamentals are extremely healthy indicating high scope for listing gains, as also a good long term pick.”

MORE WILL BE ADDED AS THEY BECOME AVAILABLE

Standard disclaimer: Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above information is collated from various online sources and is for educational purpose only. Please visit individual brokerage sites to read the actual reports. Please do not make your investment decisions based on this info as it is not complete and exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.

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