Specialty Chemical Stock To Buy: 300% Dividend, Payable By 20th September; A Profitable Buy?

Founded in 2003, Clean Science and Technology Limited (CSTL) is a manufacturer of fine and speciality chemicals. It is one of the largest manufacturers of several chemicals developed in-house in the world. Performance chemicals, pharmaceutical chemicals, and FMCG chemicals are the three main divisions of the company's specialist chemical chemistry business.

Clean Science and Technology Dividend

"The Board of Directors at its meeting held on 15th May, 2024 has recommended a final dividend of Rs 3 (300%) per share of Rs 1/- each for the year 2023- 24. The final dividend is subject to the approval of members at the ensuing Annual General Meeting and shall be subject to tax deduction at source. The final dividend for the year 2023-24 of Rs 3/- would result in cash outflow of Rs 318.76 million. Total dividend payout for year 2023-24 would be Rs 531.26 million which is equivalent to 21.44% of the PAT. We are pleased to inform that, payout ratio has increased from 17.50% in 2022-23 to 21.44% in 2023-24. The cash balance continues to be healthy, led by robust cash conversion cycle, despite increased payout and capex," said the company in a report.

"The 21st Annual General Meeting will be held on Thursday, 5th September, 2024 through Video Conferencing/ Other Audio-Visual Means. The Register of Members and Share Transfer Books of the Company will remain closed from Friday, 30th August, 2024 to Thursday, 5th September, 2024 both days inclusive for the purpose of Annual General Meeting and the Final Dividend will be paid on Friday, 20th September, 2024," the company informed stock exchanges.

Clean Science and Technology Q1 Results

The company's net sales on a stand-alone basis increased by 15.52% to Rs. 217.31 crore in the June 2024 quarter from Rs. 188.11 crore in the June 2023 quarter. Its net profit improved 23.26% from Rs. 58.54 crore in Q1FY24 to Rs. 72.16 crore in Q1FY25. On a standalone basis, EBITDA climbed by 20.83% to Rs. 107.42 crore in the June 2024 quarter from Rs. 88.90 crore in the same quarter of FY24.

Clean Science and Technology Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The current trading price of CLEAN is Rs 1514. The stock has recently shown signs of profit booking from higher levels. If there is a reversal from the Rs 1460 level, where the 100 EMA exists, it could be considered a buying opportunity. If the price manages to close above Rs 1600, it may have the potential to reach short-term targets of Rs 1700. Immediate support is located at Rs 1460, presenting potential buying opportunities on dips."

"The Relative Strength Index (RSI) is currently at 44.67 and trending upward, indicating a possible increase in buying momentum. To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1400. This precaution will help protect your investment in the event of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, CLEAN appears to be an appealing buying opportunity above Rs 1600 for those targeting a price of Rs 1700, provided that appropriate risk management measures are implemented," the analyst recommended further.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.