Clean Science and Technology Limited (CSTL) – A clean and green future ahead

In my personal opinion, the Management had a cautious tone in the recent Concall w/ some positives and negatives going forward.
Some notes from the Q2’FY2024 Concall by Management:-
Positives
Product Mix Change:-

This is reflected in improved margins this quarter and will help in product diversification going forward.

New Customer Acquisition for HALS:-

This volume should be reflected in the upcoming quarters for Clean Science

Potential Mean Reversion Play:-

Strategic Capex(30Cr) with Large Revenue(100Cr):-

Negatives
Destocking Pressure to continue:-

This should continue for a couple of quarters

Demand Environment continues to be weak:-

Under performance of Performance Chemical Segment:-

Summary:-

• The valuations of the company continue to be a bit elevated.
• It is a debt free organization with all the planned CAPEX to be funded from internal accruals.
• The overhang of management bringing the stake <75% is done and FII have increased the stake over last 2 quarters in the company.
• Demand environment and destocking situation will potentially result in some headwinds in coming couple of quarters.