I asked your first question to Gemini and this is what it replied.
From Last concall
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As per my understanding Vinati organics is entering into MEHQ & Guicol business. Don’t know what will be the implications. Vinati is a customer of Clean Science.
Vinati expects meaningful revenue contribution from MEHQ from FY26. From Q1 concall.
Some digging: global MEHQ & Guicol market size is $1.96Billion & $325 million as of 2023 so Vinati can eat revenue of other global players meanwhile instead of eating Clean Science. Also clean Science is a low cost producer. Vinati has become able to produce these compounds using the clean science method. So this might not be a big threat.
Clean science is in stage 1. All negative things are priced in a stage 1 stock so I’m not much bothered about Vinati. From stage 1 to stage 2 transition a trigger is needed. As per my understanding here the trigger seems to be increasing revenue from HALS.
Disclosure: invested from 1295. 5% allocation.
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As per my understanding HALS is In-House Technology with backward integration which Needs a lot Process improvement, Cost optimization and which is not going to happen until atleast it reaches 70% capacity utilization level! when it reached 70% capacity utilization level company will definitely work on both 1.Process improvement, 2.Cost optimization because company strength and moat lies behind 1 & 2! I’m not expecting premium margins from HALS under 70% capacity utilization! atleast 25% kind of margins at 70% capacity utilization reasonable near term. I’m seriously monitoring Standalone level revenue growth with sustainable margin(Like Past and Current Level) one should remember there is No Capex at Standalone and hence one can expect value growth over Volume growth! if company’s HALS Process is Novel then that will be a key trigger for Stock Re-Rating! but it is not going to happen near term it’s a Journey which means my assumption is Clean Science is only for Long Term investors at this price point because near term margin compression at Consolidated Level may hurt Investor sentiment and further De-Rating also possible!
Disc: Invested 5% at Rs.1325/-
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We need to study when Vinati will stop buying MEHQ from CleanScience. I read from thread above that Vinati was major customer of Clean’s MEHQ and now since they have in house capacity, they will stop plus they will now compete with CleanScience for the same market.
So how much MEHQ volume that will immediate be affected? I dont think we need to worry about competition on getting rest of the market but the direct impact that Vinati will no longer buy from CleanScience need to be find out. Mgmt will not reveal this in direct concall question as they dont reveal the customer names and product level revenues… it does not look like it has affected so far given the rise in volume.
Is MEHQ still major revenue contributor for cleanscience? I read in beginning post that MEHQ+Guia contributes to 50% revenue. Can anyone confirm this please?
Performance Chemicals segment: MEHQ falls under the “Performance Chemicals” segment, which contributes a significant portion of Clean Science’s revenue. In FY23, this segment contributed 68% of the total revenue.
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Yesterday we have interesting filing about BHT Production starting on campaign basis. I was not able to find any recent earnings call discussion on BHT. appreciate if anyone know about this product? what are projected revenues? I have written to their investor relations to get more color.
I supplied Gemini advance last 4 concall PDF and it could not point anything about BHT
More details on BHT
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company update start production of 2,5-Dihydroxy-1,4-Dithiane
Market size of this product, various competition & other information is not provided,
below information i got from search about usage of product , we might get further clarity at earning call, this is seems to be regular product as management mention import substitution and cross selling while BHT mention as campaign basis production to utilize available capacity
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this was said in last concall and DHDT is I think same product.
Based on shipment data of US, Clean science has record US shipment in this Qtr = 14 (13 + 1 from clean fino chem) - Oct - 6, Nov - 7 and Dec - 1. US is 20% of revenue so this data does not corelate with topline much but definitely it is promising data suggesting US biz is doing well. Also there is separate export shipment under clean fino chem in November first time so hopefully someone from US picked up HALS.
If other regions have hold their fort, we can see record revenue.
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How to track this data is there any website?
HALS is picking up pace in export… After US, now South Africa!!
I am very excited how Q4 is going to be. Q3 may show surge but Q4 must be trigger for next big upside…
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What percentage of your portfolio is currently allocated to this business?
16% for me. I went bit heavy at 1270 so…
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Clean Science acquired Company: Clean Fino-Chem Limited
The company manufactures and sells specialty chemicals, wholly owned subsidiary.
Total Consideration Paid: Rs. 64,88,99,966/-
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Company Approved additional investment of Rs. 300 Crores in one or more tranches in Clean Fino-Chem Limited, a Wholly Owned Subsidiary.
Interim dividend - 2/sh
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Company has doubled fixed assets from March 2022 till Now but there’s no substantial increase in sales/revenue. At 55 PE the type of growth seems not justified.
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Attended the today’s concall.
Anyone here that is long on Cleanscience and studied at length, following every Qtr concalls?
I want to engage in telephonic conversation to understand few things and how this can play out.
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