Neogen Chemicals Ltd. (NEOGEN) AI Stock Analysis

• Market Cap: ₹37.92B
• Dividend Yield: 0.14%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 112.8
• Beta (1Y): 1.33
• Revenue Growth: 11.14%
• EPS Growth: -11.17%
• Country: IN
• Employees: 588
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 4.00
• Shares Outstanding: 26,381,674
• 10 Day Avg. Volume: 2,003
• 30 Day Avg. Volume: 1,564
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,640.50
• Price Target Upside: 14.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: ₹1,611.00 ▲(12.07% Upside)

Neogen Chemicals Ltd. has strong financial performance regarding revenue growth and operational efficiency but faces significant challenges in profitability and cash flow management. Technical analysis suggests a bearish trend, with the stock trading below key moving averages and limited market momentum. The high P/E ratio indicates potential overvaluation, which, combined with a low dividend yield, suggests limited appeal for income-focused investors.

Neogen Chemicals Ltd. Business Overview & Revenue Model

Company Description

Neogen Chemicals Ltd. (NEOGEN) is an India-based company specializing in the manufacturing of specialty chemicals. Founded in 1991, the company operates in two primary sectors: Bromine Compounds and Lithium Compounds. NEOGEN supplies these chemicals to a variety of industries, including pharmaceuticals, engineering, agrochemicals, and electronics. The company is known for its expertise in complex chemistries and offers a broad range of products that cater to diverse industrial applications.

How the Company Makes Money

Neogen Chemicals Ltd. generates revenue primarily through the sale of its specialty chemical products. The company's key revenue streams include the manufacturing and distribution of Bromine-based compounds and Lithium-based compounds. These chemicals are sold to various industries, such as pharmaceuticals, where they are used in drug production; agrochemicals, for use in pesticides and fertilizers; and electronics, for applications in battery manufacturing. NEOGEN has established long-term relationships with several key clients and partners, ensuring a steady demand for its products. Additionally, the company invests in research and development to innovate and expand its product offerings, thereby enhancing its market reach and revenue potential.

Neogen Chemicals Ltd. Financial Statement Overview

Summary

Neogen Chemicals Ltd. shows promising growth in revenue and operational efficiencies, yet faces challenges with profitability and cash flow management. The increasing leverage could be a concern if not managed prudently. Overall, the company is on a growth trajectory but needs to address cash flow and profitability issues to strengthen its financial health.

Income Statement

The company has demonstrated strong revenue growth with a significant increase from 2024 to 2025. The gross profit margin is healthy, indicating efficient cost management. However, net profit margins are relatively low, suggesting that operational costs and other expenses are eroding profitability. The EBIT and EBITDA margins are improving, showing positive operational efficiency.

Balance Sheet

The balance sheet reflects a robust equity position with a steady increase in stockholders' equity over the years. However, the debt-to-equity ratio is relatively high, indicating significant leverage which could pose risks in terms of financial stability. The equity ratio suggests a balanced approach to asset financing.

Cash Flow

The company's cash flow statements indicate volatility, with negative free cash flows in recent years despite improved operating cash flows. This suggests potential cash management challenges. The operating cash flow to net income ratio indicates that cash generation from operations is not consistently translating into profitability.

Breakdown	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	7.78B	6.91B	4.87B	6.86B	3.36B
Gross Profit	3.54B	2.87B	1.40B	2.98B	969.86M
EBITDA	1.36B	1.13B	876.60M	1.16B	644.96M
Net Income	348.30M	356.50M	446.30M	499.70M	313.30M
Balance Sheet
Total Assets	17.47B	14.61B	7.99B	10.54B	4.92B
Cash, Cash Equivalents and Short-Term Investments	49.60M	124.90M	1.14B	1.31B	5.14M
Total Debt	5.97B	4.09B	2.29B	3.70B	2.22B
Total Liabilities	9.58B	7.01B	3.60B	5.71B	3.09B
Stockholders Equity	7.89B	7.60B	4.39B	4.83B	1.83B
Cash Flow
Free Cash Flow	-1.22B	-3.32B	-1.69B	-1.34B	-514.61M
Operating Cash Flow	1.96B	-291.50M	14.10M	-303.50M	835.70M
Investing Cash Flow	-3.17B	-2.16B	-1.46B	-944.60M	-1.35B
Financing Cash Flow	1.13B	2.37B	1.88B	1.00B	507.27M

Neogen Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1437.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEOGEN, the sentiment is Negative. The current price of 1437.55 is below the 20-day moving average (MA) of 1520.99, below the 50-day MA of 1585.04, and below the 200-day MA of 1788.19, indicating a bearish trend. The MACD of -47.18 indicates Positive momentum. The RSI at 33.24 is Neutral, neither overbought nor oversold. The STOCH value of 15.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NEOGEN.

Neogen Chemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROSSARI	69 Neutral	₹35.18B	26.03		0.08%	11.77%	-1.14%
Sector *	61 Neutral	$10.08B	5.96	1.53%	3.00%	3.04%	-41.02%
BALAMINES	59 Neutral	₹49.90B	32.78		0.70%	-12.28%	-22.10%
UFLEX	58 Neutral	₹42.70B	30.00		0.51%	11.07%	―
HIKAL	55 Neutral	₹33.07B	52.26		0.45%	1.67%	-6.63%
NEOGEN	51 Neutral	₹37.92B	112.77		0.14%	11.14%	-11.17%
TIRUMALCHM	48 Neutral	₹29.19B	―		0.35%	-1.61%	-18.85%

Neogen Chemicals Ltd. Corporate Events

Neogen Chemicals Releases Q1 FY26 Earnings Presentation

Neogen Chemicals Ltd. has released its earnings presentation for the quarter ending June 30, 2025, highlighting the un-audited financial results. This announcement is part of the company’s compliance with SEBI regulations and reflects its ongoing efforts to maintain transparency with stakeholders. The financial results and presentation are available on the company’s website, indicating a commitment to open communication and potentially impacting investor confidence and market positioning.

Neogen Chemicals Releases Q1 FY26 Earnings Presentation

Neogen Chemicals Ltd. has released its earnings presentation for the quarter ending June 30, 2025, highlighting the un-audited financial results. This announcement is part of the company’s compliance with SEBI regulations and reflects its ongoing commitment to transparency and stakeholder engagement. The earnings presentation is available on the company’s website, indicating a strategic focus on maintaining investor relations and providing insights into its financial performance.

Neogen Chemicals Reports Resilient Q1 FY26 Performance

Neogen Chemicals Limited reported a steady financial performance for the first quarter of FY26, with revenues increasing by 4% year-on-year to INR 187 crore, despite the Dahej plant being unavailable due to a fire incident. The company’s EBITDA rose by 2% to INR 32 crore, supported by a favorable product mix and cost optimization efforts, resulting in an EBITDA margin of 16.9%. The profit after tax stood at INR 10 crore, reflecting the operational performance. This resilient performance underscores the strength of Neogen’s diversified business model and its ability to sustain growth even amid operational challenges.

Neogen Chemicals Confirms Stable Shareholding Structure for FY 2025

Neogen Chemicals Ltd.’s promoter, Haridas Thakarshi Kanani, has confirmed that there has been no change in the encumbrance status of the company’s shares for the financial year ending March 31, 2025. This disclosure under Regulation 31(4) of SEBI regulations indicates stability in the company’s shareholding structure, which may reassure stakeholders about the company’s consistent management and financial practices.