Neogen Chemicals Ltd. (NEOGEN) AI Stock Analysis

• Market Cap: ₹36.63B
• Dividend Yield: 0.09%
• Average Volume (3M): 9.36K
• Price to Earnings (P/E): 211.5
• Beta (1Y): 1.45
• Revenue Growth: 8.44%
• EPS Growth: -35.59%
• Country: IN
• Employees: 588
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.40
• 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: ₹2,001.00
• Price Target Upside: 72.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 10.79
• Revenue Forecast (FY): ₹8.46B

• Rating: 61 Neutral
• Price Target: ₹1,526.00 ▲(31.90% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily weighed down by expensive valuation (very high P/E) and weaker cash-flow quality despite solid revenue growth. Technicals are supportive, with the stock above key moving averages and positive momentum indicators, partially offsetting financial risks from low net margins and higher leverage.

Positive Factors

Diversified end‑market exposure

Neogen supplies bromine- and lithium-based intermediates across pharmaceuticals, agrochemicals, specialty materials and energy-storage supply chains. This market diversification reduces single-sector cyclicality and provides structural exposure to multi-year growth in batteries and specialty chemistry.

Improving operating margins and revenue growth

Reported strong revenue growth alongside improving EBIT/EBITDA margins indicates operational progress and better mix toward higher-value intermediates. Sustained margin improvement reflects scalable manufacturing and pricing power in specialty products, supporting durable profitability gains if maintained.

Growing equity base / balance sheet support

A steadily increasing equity base strengthens the company’s capacity to fund capex, support contract manufacturing commitments, and absorb shocks. Higher shareholder equity improves creditor confidence and underpins long-term strategic investments despite other leverage considerations.

Negative Factors

Volatile cash flow & negative free cash flow

Negative and volatile free cash flows impair Neogen’s ability to self-fund expansion, repay debt, and invest in higher-margin capacity. Persistent FCF weakness increases reliance on external financing, raising execution risk for multi-year product development and capital projects.

Relatively high leverage

Elevated debt levels raise interest and refinancing sensitivity and limit financial flexibility. In an industry requiring periodic capex and raw-material funding, high leverage magnifies downside risk from demand slowdowns or input-cost inflation, constraining strategic options over months.

Low net profit margins

Despite healthy gross margins, low net margins indicate SG&A, financing, or non-operational costs are eroding returns. This compresses retained earnings and ROIC, limiting the company’s long-term capacity to reinvest, pay down debt, or generate durable shareholder returns.

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

Income statement strength (72) from strong revenue growth and improving EBIT/EBITDA margins is tempered by low net margins. Balance sheet (65) shows growing equity but relatively high leverage. Cash flow (58) is the key drag due to volatile cash generation and negative free cash flow in recent years.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• 100DMA: Positive
• 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 below the 20-day moving average (MA) of 1344.43, below the 50-day MA of 1248.38, and below the 200-day MA of 1413.05, indicating a neutral trend. The MACD of 42.17 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 62.89 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	₹26.88B	24.59	―	0.09%	15.47%	-1.72%
BALAMINES	69 Neutral	₹34.58B	29.53	―	0.97%	-10.76%	-27.70%
UFLEX	64 Neutral	₹33.65B	25.06	―	0.62%	7.44%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NEOGEN	61 Neutral	₹36.63B	211.46	―	0.09%	8.44%	-35.59%
HIKAL	58 Neutral	₹23.72B	-118.51	―	0.58%	-6.72%	-86.26%
TIRUMALCHM	41 Neutral	₹21.63B	-15.05	―	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.