Check Before You Invest : CLN Energy Ltd

BSE: 544347 NSE: ISIN: INE0WDX01010

| Sector: Automobiles | Industry: Batteries

Snapshot

Q.1 Which industry/sub-sector does CLN Energy Ltd belong to?

CLN Energy Ltd belongs to the Automobiles sector, operating specifically within the Batteries segment.

Q.2 Is CLN Energy Ltd a good quality company?

CLN Energy Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is CLN Energy Ltd undervalued or overvalued?

CLN Energy Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is CLN Energy Ltd a good buy now?

CLN Energy Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of CLN Energy Ltd?

CLN Energy Ltd revenue growth is 65.2% for FY-2025, which is above its 3-year CAGR of 21.67%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of CLN Energy Ltd?

CLN Energy Ltd Return on capital employed is 31.85% for FY-2025, which is in line with its 3-year historical median of 31.85%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of CLN Energy Ltd?

CLN Energy Ltd Return on Asset is 8.42%, which is in line with its 3-year historical median of 8.42%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of CLN Energy Ltd?

CLN Energy Ltd Return on equity is 23.96% for FY-2025, which is in line with its 3-year historical median of 23.96%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of CLN Energy Ltd?

CLN Energy Ltd Cash conversion cycle is 68 days, above its 3-year historical median of -2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.43	1.43
ROE	23.96	23.96
ROCE	31.85	31.85
Cash Conversion Cycle	68 days	-2 days

Q.6 Gross Profit margin of CLN Energy Ltd?

CLN Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.5% for FY-2025, which is in line with its 3-year median of 11.5%, indicating stable margins.

Q.7 Operating Profit Margin of CLN Energy Ltd?

CLN Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.9% for FY-2025, which is below its 3-year median of 14.33% indicating decreasing margins.

Q.8 Net Profit Margin of CLN Energy Ltd?

CLN Energy Ltd Net Profit Margin is 5.9% for FY-2025, is in line with with its 3-year median of 5.9%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	11.5	11.5
Operating Profit Margin	11.9	14.33
Net Profit Margin	5.9	5.9

Q.9 Debt to Equity ratio of CLN Energy Ltd?

CLN Energy Ltd Debt-to-Equity ratio is 0.17, which is lower with the industry average of 0.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of CLN Energy Ltd?

CLN Energy Ltd Debt to cash flow from operations is -0.24, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of CLN Energy Ltd?

Promoters hold 72.60% of the CLN Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of CLN Energy Ltd vs industry peers?

CLN Energy Ltd revenue CAGR is 21.67%, compared to the industry median CAGR of 8.85%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	65.2	8.9
Gross Profit Growth	31.6	13.4
Operating Profit Growth	31.6	13.6
Net Profit Growth	30	15.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.43	1.16
ROE	23.96	17.19
ROCE	31.85	18.2
Cash Conversion Cycle (days)	68.24	67

Valuation & price assessment

Q.1 Stock return of CLN Energy Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -6.16% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-6.2%

Q.3 Valuation ratios of CLN Energy Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	32.42	34.75	35.25
Price to Book	4.43	4.59	4.58
Price to Sales	1.91	2.27	2.10
EV to EBITDA	16.44	17.80	18.40

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