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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 542665 | NSE: NEOGEN

Neogen Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:43 pm

Market Cap 5,109 Cr.
Current Price 1,934
High / Low2,390/1,149
Stock P/E104
Book Value 298
Dividend Yield0.10 %
ROCE10.4 %
ROE7.06 %
Face Value 10.0
PEG Ratio20.36

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Neogen Chemicals Ltd

Competitors of Neogen Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 701 Cr. 76.3131/75.034.1 19.20.39 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 41.4 Cr. 84.4124/48.79.16 87.21.19 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 56.4 Cr. 8291,355/44229.5 6630.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,643 Cr. 102120/58.729.0 19.20.49 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 727 Cr. 291380/24554.8 85.40.34 %10.8 %5.68 % 10.0
Industry Average12,180.32 Cr897.5255.70181.120.33%13.12%10.00%6.77

All Competitor Stocks of Neogen Chemicals Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales85113133157148148186204170168167191167
Expenses6993109130123124156171141142142157138
Operating Profit16212427252430332926263428
OPM %18%18%18%17%17%16%16%16%17%16%15%18%17%
Other Income0001101222143
Interest4465677911111099
Depreciation2244444455556
Profit before tax10141419161421211612122317
Tax %28%22%24%17%29%29%29%31%28%26%53%24%25%
Net Profit71110161110151411961812
EPS in Rs3.164.804.496.284.463.975.905.754.583.662.206.714.71

Last Updated: November 12, 2024, 5:27 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 12, 2024, 5:27 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales667484100110161239306336487686696693
Expenses5762718690132196248272401575581578
Operating Profit9111314202943586487112116114
OPM %14%16%15%14%18%18%18%19%19%18%16%17%17%
Other Income00100110115910
Interest455581012121419294139
Depreciation11111235712162021
Profit before tax5688121829414457716464
Tax %23%41%37%39%33%39%28%30%29%22%30%31%
Net Profit445581121293145504445
EPS in Rs9.138.0911.312.593.885.3410.4812.3313.4717.9320.0716.7017.28
Dividend Payout %22%25%18%77%26%19%14%16%17%15%15%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%25.00%0.00%60.00%37.50%90.91%38.10%6.90%45.16%11.11%-12.00%
Change in YoY Net Profit Growth (%)0.00%25.00%-25.00%60.00%-22.50%53.41%-52.81%-31.20%38.26%-34.05%-23.11%

Neogen Chemicals Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:25%
5 Years:24%
3 Years:27%
TTM:-4%
Compounded Profit Growth
10 Years:28%
5 Years:16%
3 Years:12%
TTM:-1%
Stock Price CAGR
10 Years:%
5 Years:40%
3 Years:9%
1 Year:26%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:10%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:59 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital44420202020232325252626
Reserves1215198223150133160414458739759
Borrowings212524266982120137222229370389471
Other Liabilities161821274148566187131202224218
Total Liabilities556369801521812473554928001,0541,3781,474
Fixed Assets13141317566783111127285347345362
CWIP0001110311511365627
Investments000000000817725212
Other Assets4249556294112163242250423594952873
Total Assets556369801521812473554928001,0541,3781,474

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +0399012-4-34831-30-115
Cash from Investing Activity +0-1-2-4-33-13-20-29-134-146-94-122
Cash from Financing Activity +0-2-6-433-0246251188100217
Net Cash Flow00101-10-1-044-25-20

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-12.00-14.00-11.00-12.00-49.00-53.00-77.00-79.00-158.00-142.00-258.00-273.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days67827858107949390858294140
Inventory Days187173178190228192188257211258275343
Days Payable12411712013017714111171122131147129
Cash Conversion Cycle130138136117158145169276174209223355
Working Capital Days132140140126167142163217164190205319
ROCE %26%26%27%26%23%23%26%22%17%14%13%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters64.33%60.19%60.19%60.19%60.19%60.18%60.18%60.18%56.89%56.89%56.89%51.22%
FIIs0.00%4.36%4.28%3.74%3.99%4.13%4.30%4.25%4.51%4.56%4.65%8.17%
DIIs18.82%18.64%19.33%19.12%18.89%20.01%19.87%20.25%22.85%22.14%22.54%22.48%
Public16.85%16.81%16.20%16.96%16.93%15.68%15.63%15.32%15.75%16.42%15.93%18.12%
No. of Shareholders34,23039,62638,64240,92649,48851,68647,58145,30047,01848,35646,69846,470

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Small Cap Fund1,217,8091.03183.91935,0512024-11-2330.24%
SBI Large & Midcap Fund935,0510.81139.66935,0512024-11-230%
SBI Contra Fund808,1410.64120.83935,0512024-11-23-13.57%
Quant Small Cap Fund427,5770.5864.57935,0512024-11-23-54.27%
Sundaram Small Cap Fund265,5291.3940.1935,0512024-11-23-71.6%
Axis Flexi Cap Fund212,8010.2932.14935,0512024-11-23-77.24%
SBI Equity Savings Fund212,7110.9831.78935,0512024-11-23-77.25%
Tata ELSS Tax Saver Fund199,5360.8130.13935,0512024-11-23-78.66%
Axis Special Situations Fund160,8971.9724.3935,0512024-11-23-82.79%
Union Small Cap Fund158,2921.9123.91935,0512024-11-23-83.07%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)13.9620.0318.7013.4512.28
Diluted EPS (Rs.)13.9620.0318.7013.4512.28
Cash EPS (Rs.)22.1126.4922.5816.3814.53
Book Value[Excl.RevalReserv]/Share (Rs.)288.21193.47176.1278.4366.96
Book Value[Incl.RevalReserv]/Share (Rs.)288.21193.47176.1278.4366.96
Revenue From Operations / Share (Rs.)261.82275.13195.37144.17131.19
PBDIT / Share (Rs.)44.5546.5435.2227.8124.97
PBIT / Share (Rs.)35.8840.0430.5324.8522.72
PBT / Share (Rs.)19.9328.4422.8818.9517.61
Net Profit / Share (Rs.)13.4520.0017.8913.4312.28
NP After MI And SOA / Share (Rs.)13.5120.0417.8913.4312.28
PBDIT Margin (%)17.0116.9118.0219.2819.03
PBIT Margin (%)13.7014.5515.6217.2317.32
PBT Margin (%)7.6110.3311.7113.1413.42
Net Profit Margin (%)5.137.269.159.319.36
NP After MI And SOA Margin (%)5.167.289.159.319.36
Return on Networth / Equity (%)4.6810.3510.1617.1118.34
Return on Capital Employeed (%)10.1215.5013.1018.2325.86
Return On Assets (%)2.434.745.586.368.07
Long Term Debt / Equity (X)0.160.260.270.630.19
Total Debt / Equity (X)0.510.750.451.100.84
Asset Turnover Ratio (%)0.540.740.750.791.02
Current Ratio (X)1.491.602.261.381.54
Quick Ratio (X)0.760.881.370.720.67
Inventory Turnover Ratio (X)1.411.992.231.482.25
Dividend Payout Ratio (NP) (%)20.9813.7211.7614.8912.21
Dividend Payout Ratio (CP) (%)12.7810.369.3212.2010.32
Earning Retention Ratio (%)79.0286.2888.2485.1187.79
Cash Earning Retention Ratio (%)87.2289.6490.6887.8089.68
Interest Coverage Ratio (X)2.794.014.604.714.89
Interest Coverage Ratio (Post Tax) (X)1.842.723.343.283.40
Enterprise Value (Cr.)3527.653541.314504.162217.48950.09
EV / Net Operating Revenue (X)5.115.169.246.593.10
EV / EBITDA (X)30.0230.5151.2834.1816.31
MarketCap / Net Operating Revenue (X)4.564.668.935.992.68
Retention Ratios (%)79.0186.2788.2385.1087.78
Price / BV (X)4.146.639.9111.025.24
Price / Net Operating Revenue (X)4.564.668.936.002.68
EarningsYield0.010.010.010.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Neogen Chemicals Ltd as of November 24, 2024 is: 2,190.22

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Neogen Chemicals Ltd is Undervalued by 13.25% compared to the current share price 1,934.00

Intrinsic Value of Neogen Chemicals Ltd as of November 24, 2024 is: 2,302.09

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Neogen Chemicals Ltd is Undervalued by 19.03% compared to the current share price 1,934.00

Last 5 Year EPS CAGR: 5.11%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.08%, which is a positive sign.
  2. The company has higher reserves (216.92 cr) compared to borrowings (168.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (310.62 cr) and profit (32.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 175.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 185.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Neogen Chemicals Ltd:
    1. Net Profit Margin: 5.13%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.12% (Industry Average ROCE: 13.12%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 4.68% (Industry Average ROE: 10%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.84
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.76
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 104 (Industry average Stock P/E: 55.7)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.51
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Neogen Chemicals Ltd. is a Public Limited Listed company incorporated on 07/03/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24200MH1989PLC050919 and registration number is 050919. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 487.25 Cr. and Equity Capital is Rs. 24.94 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersNo. 1002, 10th Floor, Thane Maharashtra 400601investor@neogenchem.com
http://www.neogenchem.com
Management
NamePosition Held
Mr. Haridas KananiChairman & Managing Director
Dr. Harin KananiManaging Director
Mr. Shyamsunder UpadhyayWhole Time Director
Mr. Anurag SuranaNon Exe.Non Ind.Director
Mr. Sanjay MehtaIndependent Director
Mr. Hitesh ReshamwalaIndependent Director
Prof. Ranjan Kumar MalikIndependent Director
Mrs. Avi SabavalaIndependent Director

FAQ

What is the latest intrinsic value of Neogen Chemicals Ltd?

The latest intrinsic value of Neogen Chemicals Ltd as on 24 November 2024 is ₹2190.22, which is 13.25% higher than the current market price of ₹1,934.00.

What is the Market Cap of Neogen Chemicals Ltd?

The Market Cap of Neogen Chemicals Ltd is 5,109 Cr..

What is the current Stock Price of Neogen Chemicals Ltd as on 24 November 2024?

The current stock price of Neogen Chemicals Ltd as on 24 November 2024 is 1,934.

What is the High / Low of Neogen Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Neogen Chemicals Ltd stocks is 2,390/1,149.

What is the Stock P/E of Neogen Chemicals Ltd?

The Stock P/E of Neogen Chemicals Ltd is 104.

What is the Book Value of Neogen Chemicals Ltd?

The Book Value of Neogen Chemicals Ltd is 298.

What is the Dividend Yield of Neogen Chemicals Ltd?

The Dividend Yield of Neogen Chemicals Ltd is 0.10 %.

What is the ROCE of Neogen Chemicals Ltd?

The ROCE of Neogen Chemicals Ltd is 10.4 %.

What is the ROE of Neogen Chemicals Ltd?

The ROE of Neogen Chemicals Ltd is 7.06 %.

What is the Face Value of Neogen Chemicals Ltd?

The Face Value of Neogen Chemicals Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Neogen Chemicals Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE