Check Before You Invest : CLN Energy Ltd

Q: 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: Is CLN Energy Ltd a good quality company?

CLN Energy Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is CLN Energy Ltd undervalued or overvalued?

CLN Energy Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 32.01, Historic Median: 34.42. Price to Book, Current: 4.38, Historic Median: 4.55. Price to Sales, Current: 1.89, Historic Median: 2.21. EV to EBITDA, Current: 16.23, Historic Median: 17.43

Q: 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

Q: 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: 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: 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: Net Profit Margin of CLN Energy Ltd?

CLN Energy Ltd Net Profit Margin is 5.9% for FY-2025, is in line with its 3-year median of 5.9%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.5, Historic Median: 11.5. Operating Profit Margin (%), Current: 11.9, Historic Median: 14.33. Net Profit Margin (%), Current: 5.9, Historic Median: 5.9

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is CLN Energy Ltd undervalued or overvalued?

CLN Energy Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	3-year Historic Median
Price to Earnings	32.01	34.42
Price to Book	4.38	4.55
Price to Sales	1.89	2.21
EV to EBITDA	16.23	17.43

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 Net Profit Margin of CLN Energy Ltd?

CLN Energy Ltd Net Profit Margin is 5.9% for FY-2025, is in line 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	1.43	1.43
ROE (%)	23.96	23.96
ROCE (%)	31.85	31.85
Cash Conversion Cycle	68 days	-2 days

C: How much debt does the business have and is it at a sustainable level?

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

CLN Energy Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.06, indicating higher 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

D: Promoter shareholding and pledge status of CLN Energy Ltd?

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)

E: How does CLN Energy Ltd performance compare with that of its Peers?

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 (x)	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 -7.48% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-7.5%

Q.2 Valuation ratios of CLN Energy Ltd vs historical?

The current P/E ratio of 32.01 is lower than its historical median of 34.42, indicating that the stock is trading below its historical average valuation.

Q.3 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	32.01	34.42	35.14
Price to Book	4.38	4.55	4.58
Price to Sales	1.89	2.21	2.09
EV to EBITDA	16.23	17.43	18.28

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Check Before You Invest : CLN Energy Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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