Neogen Chemicals Ltd. (NEOGEN) AI Stock Analysis

• Market Cap: ₹29.96B
• Dividend Yield: 0.09%
• Average Volume (3M): 9.36K
• Price to Earnings (P/E): 115.0
• Beta (1Y): 1.36
• Revenue Growth: 8.44%
• EPS Growth: -35.59%
• Country: IN
• Employees: 588
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.30
• Shares Outstanding: 26,381,674
• 10 Day Avg. Volume: 1,157
• 30 Day Avg. Volume: 9,357
• PEG Ratio: -22.51
• Price to Book (P/B): 5.41
• Price to Sales (P/S): 5.49
• P/FCF Ratio: -35.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹1,120.00 ▼(-3.19% Downside)

The overall stock score reflects a combination of financial performance challenges, bearish technical indicators, and high valuation concerns. The company's growth trajectory is promising, but profitability and cash flow issues need addressing. The technical analysis suggests weak market momentum, and the high P/E ratio indicates potential overvaluation.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful product offerings, supporting long-term business sustainability.

Operational Efficiency

Efficient cost management through healthy gross margins suggests the company can maintain profitability even as it scales operations.

Market Position

Being a leading supplier in its sector provides competitive advantages, helping secure long-term contracts and stable revenue streams.

Negative Factors

Profitability Challenges

Low net profit margins indicate that despite revenue growth, high operational costs may limit the company's ability to generate sustainable profits.

Cash Flow Volatility

Volatile cash flows can hinder the company's ability to invest in growth opportunities and manage debt, affecting long-term financial health.

High Leverage

High leverage can pose risks to financial stability, limiting flexibility in downturns and increasing vulnerability to interest rate changes.

Neogen Chemicals Ltd. Business Overview & Revenue Model

Company Description

Neogen Chemicals Limited manufactures and sells specialty chemicals in India. It offers organo bromine compounds, such as alkyl bromide compounds, dibromoalkane compounds, bromo chloro alkanes, bromine derivatives of organoacids, bromoacid ester compounds, aromatic bromine derivatives, cyclic bromine derivatives, and speciality bromo fluro derivatives; speciality chloro compounds, unsaturated bromine derivatives, bromo hydroxy derivatives, and other compounds; inorganic bromine compounds and lithium salts; grignard reagents; and advance intermediates. The company also provides custom synthesis and manufacturing services. It serves pharmaceutical, agrochemical, engineering, flavour and fragrance, electronic-chemical, refrigeration, construction chemicals, pharmaceutical, and specialty polymer industries, as well as heating, ventilation, and air-conditioning industries. The company also exports its products to 28 countries. Neogen Chemicals Limited was incorporated in 1989 and is based in Thane, India.

How the Company Makes Money

Neogen Chemicals generates revenue through multiple streams including the sale of specialty chemicals, custom synthesis services, and the manufacturing of bromine-based compounds. The company's revenue model is primarily based on direct sales to clients in various sectors such as pharmaceuticals and agrochemicals, where it provides tailored chemical solutions. Additionally, NEOGEN benefits from long-term partnerships with key players in these industries, which contribute to stable revenue. The company's focus on research and development also enables it to introduce new products, thereby expanding its market reach and enhancing earnings potential.

Neogen Chemicals Ltd. Financial Statement Overview

Summary

Neogen Chemicals Ltd. shows promising growth in revenue and operational efficiencies. However, challenges with profitability and cash flow management, along with increasing leverage, could pose risks if not managed prudently.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.84B	7.78B	6.91B	6.86B	4.87B	3.36B
Gross Profit	3.56B	3.54B	1.42B	2.98B	1.40B	969.86M
EBITDA	1.40B	1.36B	1.13B	1.16B	865.60M	644.96M
Net Income	336.40M	348.30M	356.50M	499.70M	446.30M	313.30M
Balance Sheet
Total Assets	0.00	17.47B	14.61B	10.54B	7.99B	4.92B
Cash, Cash Equivalents and Short-Term Investments	49.60M	49.60M	124.90M	967.60M	1.14B	5.10M
Total Debt	0.00	5.97B	4.09B	3.70B	2.29B	2.22B
Total Liabilities	-7.89B	9.58B	7.01B	5.71B	3.60B	3.09B
Stockholders Equity	7.89B	7.89B	7.60B	4.83B	4.39B	1.83B
Cash Flow
Free Cash Flow	0.00	-1.22B	-3.32B	-1.34B	-1.69B	-514.61M
Operating Cash Flow	0.00	1.96B	-291.50M	-303.50M	14.10M	835.70M
Investing Cash Flow	0.00	-3.17B	-2.16B	-944.60M	-1.46B	-1.35B
Financing Cash Flow	0.00	1.13B	2.37B	1.00B	1.88B	507.27M

Neogen Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1156.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEOGEN, the sentiment is Neutral. The current price of 1156.9 is above the 20-day moving average (MA) of 1124.29, below the 50-day MA of 1184.47, and below the 200-day MA of 1461.47, indicating a neutral trend. The MACD of -7.34 indicates Negative momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 31.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	70 Outperform	₹31.34B	22.93	―	0.09%	15.47%	-1.72%
BALAMINES	69 Neutral	₹37.71B	25.86	―	0.97%	-10.76%	-27.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
UFLEX	61 Neutral	₹34.35B	8.80	―	0.62%	7.44%	―
HIKAL	58 Neutral	₹26.57B	263.03	―	0.58%	-6.72%	-86.26%
NEOGEN	54 Neutral	₹29.96B	115.01	―	0.09%	8.44%	-35.59%
TIRUMALCHM	41 Neutral	₹25.90B	-15.12	―	0.43%	-11.11%	-340.74%

Neogen Chemicals Ltd. Corporate Events

Neogen Chemicals Closes Trading Window Ahead of December Quarter Results

Neogen Chemicals Ltd. has announced the closure of its trading window for designated persons, their immediate relatives, connected persons and legitimate insiders from January 1, 2026 until 48 hours after the release of its unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. The move, made in compliance with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal insider trading policy, is a standard governance measure aimed at preventing insider trading ahead of financial disclosures, with the board meeting date for approving these results to be notified later and the disclosure also made available on the company’s website.