NGL Fine-Chem Ltd. (NGLFINE) AI Stock Analysis

• Market Cap: ₹10.07B
• Dividend Yield: 0.13%
• Average Volume (3M): 156.00
• Price to Earnings (P/E): 48.2
• Beta (1Y): 0.86
• Revenue Growth: 9.83%
• EPS Growth: -50.02%
• Country: IN
• Employees: 682
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Drug Manufacturers - General
• EPS (TTM): 15.58
• Shares Outstanding: 6,178,024
• 10 Day Avg. Volume: 192
• 30 Day Avg. Volume: 156
• PEG Ratio: -0.68
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.89
• P/FCF Ratio: -7.35
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹1,388.00 ▲(2.99% Upside)

NGL Fine-Chem Ltd. faces significant challenges with profitability and cash flow management, despite strong revenue growth. The technical indicators suggest bearish momentum, and the valuation appears stretched with a high P/E ratio and low dividend yield. These factors collectively result in a cautious outlook for the stock.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's expanding market presence and successful product offerings, which are crucial for long-term sustainability.

Stable Equity Position

A stable equity position provides a solid foundation for future investments and growth opportunities, enhancing financial stability.

Global Market Reach

Operating globally allows the company to diversify its revenue streams and reduce dependency on any single market, which is beneficial for long-term resilience.

Negative Factors

Profitability Challenges

Profitability challenges can hinder reinvestment and growth, potentially affecting the company's ability to compete effectively in the long term.

Increasing Leverage

Increased leverage can lead to higher financial risk, limiting the company's flexibility to navigate economic downturns or invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow indicates inefficiencies in cash management, which could impact the company's ability to fund operations and growth initiatives sustainably.

NGL Fine-Chem Ltd. Business Overview & Revenue Model

Company Description

NGL Fine-Chem Ltd. (NGLFINE) is a leading manufacturer and supplier in the fine chemicals sector, specializing in high-quality intermediates and specialty chemicals for various industries including pharmaceuticals, agrochemicals, and specialty coatings. The company is committed to innovation and sustainability, producing a range of products that meet stringent quality standards and regulatory requirements. NGL Fine-Chem operates on a global scale, catering to a diverse clientele with tailored solutions that enhance their operational efficiency and product performance.

How the Company Makes Money

NGL Fine-Chem Ltd. generates revenue primarily through the production and sale of fine chemicals and intermediates. The company's revenue model is based on direct sales to manufacturers in the pharmaceutical and agrochemical industries, as well as partnerships with distributors that help extend its market reach. Key revenue streams include contract manufacturing for customized chemical solutions, bulk sales of specialty chemicals, and long-term supply agreements with major industry players. Additionally, NGLFINE benefits from collaborations with research institutions and universities, which not only enhance its product development but also open up new markets and revenue opportunities. The company's focus on R&D and innovation ensures a steady pipeline of new products that can cater to evolving market demands, thereby contributing significantly to its earnings.

NGL Fine-Chem Ltd. Financial Statement Overview

Summary

NGL Fine-Chem Ltd. shows strong revenue growth and a stable equity position, but faces challenges in profitability and cash flow management. The increase in leverage and negative free cash flow are potential risks.

Income Statement

NGL Fine-Chem Ltd. has demonstrated robust revenue growth over the years, with a significant increase in Total Revenue from 2020 to 2025. The Gross Profit Margin and Net Profit Margin have shown variability, reflecting fluctuations in cost management and profitability. Although the recent year saw a decline in Net Income, the company's EBIT Margin and EBITDA Margin, while varying, indicate a stable operational performance. Overall, the income statement suggests a growing company with solid revenue but facing profitability challenges in recent years.

Balance Sheet

The balance sheet of NGL Fine-Chem Ltd. reflects a stable equity base with Stockholders' Equity consistently increasing. However, the Debt-to-Equity Ratio has risen recently, indicating increased leverage. The Equity Ratio remains healthy, suggesting a strong equity foundation. Return on Equity (ROE) has been inconsistent, indicating variable profitability relative to shareholders' investments. Overall, the balance sheet shows strengths in equity growth but reveals potential risks due to increasing leverage.

Cash Flow

The cash flow analysis reveals challenges in generating free cash flow, as evidenced by negative Free Cash Flow in recent periods. Operating Cash Flow has seen growth but not at a pace to offset high capital expenditures. The Free Cash Flow to Net Income Ratio indicates inefficiencies in converting profits into free cash flow. Overall, the cash flow statement highlights a need for improved cash management and cost control measures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.82B	3.68B	3.39B	2.78B	3.18B	2.58B
Gross Profit	1.94B	1.86B	1.70B	1.38B	1.66B	1.53B
EBITDA	450.78M	338.69M	678.69M	404.87M	788.78M	881.27M
Net Income	208.74M	211.24M	413.17M	204.96M	498.97M	567.19M
Balance Sheet
Total Assets	0.00	4.33B	3.56B	2.87B	2.77B	2.08B
Cash, Cash Equivalents and Short-Term Investments	655.28M	655.28M	553.14M	525.02M	295.49M	338.51M
Total Debt	0.00	731.53M	340.04M	324.99M	300.01M	164.48M
Total Liabilities	-2.82B	1.51B	929.04M	645.30M	737.10M	533.08M
Stockholders Equity	2.82B	2.82B	2.63B	2.23B	2.03B	1.54B
Cash Flow
Free Cash Flow	0.00	-949.49M	-80.59M	38.80M	-425.52M	101.42M
Operating Cash Flow	0.00	358.22M	204.65M	352.86M	138.25M	273.54M
Investing Cash Flow	0.00	-345.53M	-268.17M	-270.20M	-142.03M	-245.68M
Financing Cash Flow	0.00	-10.81M	-10.81M	-10.81M	-10.81M	-10.81M

NGL Fine-Chem Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1347.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NGLFINE, the sentiment is Negative. The current price of 1347.7 is below the 20-day moving average (MA) of 1424.00, below the 50-day MA of 1447.57, and above the 200-day MA of 1268.88, indicating a neutral trend. The MACD of -39.92 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NGLFINE.

NGL Fine-Chem Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GANESHBE	63 Neutral	₹6.15B	15.52	―	―	-12.30%	-26.40%
INDOBORAX	63 Neutral	₹8.17B	21.10	―	0.43%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DMCC	61 Neutral	₹7.52B	26.96	―	0.96%	40.79%	109.95%
NGLFINE	54 Neutral	₹10.07B	48.24	―	0.13%	9.83%	-50.02%
SUKHJITS	54 Neutral	₹5.06B	16.25	―	0.65%	-5.05%	-57.82%
MANGALAM	45 Neutral	₹519.48M	―	―	―	-24.55%	-310.57%