The newly-listed Clean Science and Technology share price surged over 9.5 per cent to Rs 1,736 apiece intraday on BSE, even as BSE Sensex and Nifty 50 tumbled nearly a per cent. The stock saw the listing at over 98 per cent premium to IPO price. As Clean Science stock jumped nearly 10 per cent today, analysts see at least 20 per cent more rally to Rs 2073 apiece in the stock. In bulk deals on Monday, Nomura India Investment Fund Mother Fund – The MTBJ AC Nomura India Investment Fund bought 10 lakh equity shares of Clean Science and Technology at Rs 1,715.33 per share on the NSE.
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Analysts say Clean Science and Technology stock recovered smartly from the previous low as strong fundamentals and debt-free stocks will now be in demand as risk appetite takes a beating. “Technically, a close above Rs 1,755 should lead to targets of Rs 1,877 and Rs 2,073. While Rs 1,630 should act as strong support,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.
Upon listing, Clean Science and Technology has joined listed industry peers such as Vinati Organics Limited, Fine Organic Industries Limited, Atul, SRF, Navin Fluorine, and PI Industries. Its Rs 1,546-crore IPO was subscribed 93.41 times, and was sold at a price band of Rs 880-900 a share. Clean Science and Technology stock is expected to see healthy traction ahead due to niche presence in specialty chemical space. “The IPO was valued at 42.2x of FY21 earnings, which looked to be reasonably priced. However, peers like Vinati Organics and Fine Organic Industries trade at 75x FY21 earnings, which along with superior RoE at 37% offer valuation comfort for the company,” Binod Modi, Head Strategy, Reliance Securities, told Financial Express Online.
In traded volume terms, 2.84 lakh shares have exchanged hands on BSE, while a total of 44.54 lakh units on NSE, so far in the day. The sentiments for newly listed stocks are expected to remain upbeat as long as the secondary market remains buoyant, said an analyst. “Investors are looking beyond the second wave’s immediate hit to demand, focusing instead on India’s alluring long-term fundamentals. The government plans to boost medium-term growth with federal spending,” Likhita Chepa, Senior Research Analyst, CapitalVia Global Research, told Financial Express Online. Chepa also added that liquidity is readily available, and interest rates are low. Therefore, these variables have come together to boost investor confidence and persuade businesses that the moment is right to go public.
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