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Neogen Chemicals Ltd. (IN:NEOGEN)
:NEOGEN
India Market
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Neogen Chemicals Ltd. (NEOGEN) AI Stock Analysis

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IN:NEOGEN

Neogen Chemicals Ltd.

(NEOGEN)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
₹2,035.00
▲(75.90% Upside)
Action:Reiterated
Date:07/01/26
The score is held back primarily by weakening financial quality (margin compression, sharply higher leverage, and negative operating/free cash flow), which raises funding and execution risk. Technicals are supportive with a clear uptrend and positive momentum, but valuation remains demanding due to the very high P/E despite a solid dividend yield.
Positive Factors
Specialty chemistry focus and end-market mix
Neogen’s concentration on bromine- and lithium-based specialty chemistries supplies critical intermediates to pharma, agrochemical and industrial clients. These application-specific chemistries require technical know-how and quality controls, creating higher switching costs and durable customer stickiness across end markets.
Negative Factors
Sharply higher leverage
A rapid increase in debt materially raises financial risk and reduces balance-sheet flexibility. Elevated leverage amplifies vulnerability to interest-rate moves and economic slowdowns, limits capacity for strategic investments, and increases refinancing pressure given the company’s weaker cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty chemistry focus and end-market mix
Neogen’s concentration on bromine- and lithium-based specialty chemistries supplies critical intermediates to pharma, agrochemical and industrial clients. These application-specific chemistries require technical know-how and quality controls, creating higher switching costs and durable customer stickiness across end markets.
Read all positive factors

Neogen Chemicals Ltd. (NEOGEN) vs. iShares MSCI India ETF (INDA)

Neogen Chemicals Ltd. Business Overview & Revenue Model

Company Description
Neogen Chemicals Limited, founded in Thane, India, in 1989, is engaged in the manufacturing and supply of an extensive array of specialized chemical products. The company's comprehensive portfolio encompasses numerous organo-bromine compounds, inc...
How the Company Makes Money
Neogen makes money primarily by manufacturing and selling specialty chemical products and intermediates, with revenue recognized from customer orders/contracts for these materials. Key revenue streams typically include: (1) Bromine-based specialty...

Neogen Chemicals Ltd. Financial Statement Overview

Summary
Strong multi-year revenue growth is overshadowed by a sharp 2026 deterioration: gross margin compressed (~32% vs ~46% prior year), net margin declined (~3.3%), leverage jumped (debt-to-equity ~1.71), and cash generation weakened materially (operating cash flow ~-3.37B; free cash flow ~-8.93B). This increases funding and execution risk despite ongoing top-line expansion.
Income Statement
56
Neutral
Balance Sheet
38
Negative
Cash Flow
24
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue8.62B7.78B6.91B6.86B4.87B
Gross Profit2.78B3.54B1.42B2.98B1.40B
EBITDA1.44B1.36B1.13B1.16B865.60M
Net Income287.50M348.30M356.50M499.70M446.30M
Balance Sheet
Total Assets29.02B17.47B14.61B10.54B7.99B
Cash, Cash Equivalents and Short-Term Investments49.50M49.60M124.90M967.60M1.14B
Total Debt13.95B5.97B4.09B3.70B2.29B
Total Liabilities20.86B9.58B7.01B5.71B3.60B
Stockholders Equity8.16B7.89B7.60B4.83B4.39B
Cash Flow
Free Cash Flow-8.93B-1.22B-3.32B-1.34B-1.69B
Operating Cash Flow-3.37B1.96B-291.50M-303.50M14.10M
Investing Cash Flow-4.14B-3.17B-2.16B-944.60M-1.46B
Financing Cash Flow7.51B1.13B2.37B1.00B1.88B

Neogen Chemicals Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1156.90
Price Trends
50DMA
1851.93
Positive
100DMA
1612.95
Positive
200DMA
1454.45
Positive
Market Momentum
MACD
46.90
Positive
RSI
63.67
Neutral
STOCH
73.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEOGEN, the sentiment is Positive. The current price of 1156.9 is below the 20-day moving average (MA) of 1975.96, below the 50-day MA of 1851.93, and below the 200-day MA of 1454.45, indicating a bullish trend. The MACD of 46.90 indicates Positive momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 73.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NEOGEN.

Neogen Chemicals Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹100.22B55.570.62%-2.29%-3.26%
63
Neutral
₹78.24B46.550.97%2.00%6.14%
63
Neutral
₹40.20B28.170.05%11.28%10.48%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
₹54.94B191.470.09%10.86%-17.60%
49
Neutral
₹30.92B73.780.07%32.18%636.02%
48
Neutral
₹43.09B54.370.29%-4.65%-30.36%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:NEOGEN
Neogen Chemicals Ltd.
2,082.35
486.67
30.50%
IN:ALKYLAMINE
Alkyl Amines Chemicals Limited
1,959.40
-276.83
-12.38%
IN:BALAMINES
Balaji Amines Limited
2,414.60
675.40
38.83%
IN:LXCHEM
Laxmi Organic Industries Ltd.
155.45
-36.27
-18.92%
IN:TATVA
Tatva Chintan Pharma Chem Limited
1,322.00
391.12
42.02%
IN:VISHNU
Vishnu Chemicals Limited
597.15
100.61
20.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2026