Clean Max Enviro (CLEANMAX)

FairStock Score: 45/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue momentum is strong: sales growth of 37.91% with a 5-year revenue CAGR of 19.23%.
• Profit growth of 227.22% shows recent earnings acceleration, albeit from a low base.
• Promoter holding of 49.48% is substantial and provides some alignment with minority shareholders.
• Latest quarter sales of ₹933 Cr indicate meaningful operating scale.

Concerns

• Extremely high valuation: P/E of 391.67 and P/B of 5.56 leave no margin of safety.
• High leverage and weak cash conversion: D/E of 3.87 and FCF of -₹2,202 Cr.
• Low profitability and return: ROCE of 7.39%; latest quarter net profit is just ₹19 Cr on ₹933 Cr sales, roughly 2% net margin.
• FairStock Score of 27/100 flags the stock as risky, and there is no dividend yield.

AI Analysis

At a glance, this is not a stock Benjamin Graham would have spent his Saturday afternoons on. Clean Max Enviro trades at ₹1052.45, capitalizing the company at ₹14,225 Cr, while the latest quarter shows net profit of just ₹19 Cr on sales of ₹933 Cr. That implies a net margin around 2%. The trailing P/E of 391.67 tells me I am mostly paying for hope. Sales growth of 37.91% and a five-year revenue CAGR of 19.23% do show momentum, and a 227.22% profit climb sounds impressive, but such percentage leaps from a low base can mislead. Now I look at business quality and moat. ROCE is only 7.39%, so the business is not generating a great return on capital. I don't see an obvious moat; in a capital-hungry industry, high growth without pricing power can destroy value. Debt/equity of 3.87 is heavy for any company. Free cash flow is -₹2,202 Cr. In plain language, the reported earnings are not converting into cash; the company is consuming capital to grow. Benjamin Graham would insist on a margin of safety, and at 5.56 times book with no dividend, there is little room for error. The 0.00% dividend yield means my only possible return is price appreciation—something a value investor cannot rely on. Promoter holding of 49.48% is reasonably supportive, but it does not compensate for the balance sheet risk. A FairStock score of 27/100 says risky, and I concur. This might be a fast grower in an attractive environmental theme, but at this price, the market is pricing perfection. I need positive cash flow, lower leverage, and proof that margins can expand before I call it an investment. For now, this is a 'too hard' pile, not a position.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer