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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Neogen Chemicals Ltd

About the Company - Neogen Chemicals Ltd

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

Neogen Chemicals Ltd. Share Price Update

Share PriceValue
Today₹1,341.95
Previous Day₹1,313.65

Basic Stock Data of Neogen Chemicals Ltd

Market Cap 3,473 Cr.
Current Price 1,316
High / Low1,859/1,232
Stock P/E85.3
Book Value 188
Dividend Yield0.23 %
ROCE13.2 %
ROE10.9 %
Face Value 10.0

Data Source: screener.in

Competitors of Neogen Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Pidilite Industries Ltd 1,38,393 Cr. 2,7212,805/2,25080.8 1480.41 %23.8 %18.7 % 1.00
Omkar Speciality Chemicals Ltd 16.9 Cr. 8.2012.4/6.80 83.00.00 %10.5 %% 10.0
Thirumalai Chemicals Ltd 2,677 Cr. 261264/168 1180.57 %10.9 %7.88 % 1.00
Rossari Biotech Ltd 4,221 Cr. 764904/53633.6 1770.07 %18.4 %12.4 % 2.00
Mangalam Global Enterprise Ltd 319 Cr. 22.128.2/11.519.7 8.630.09 %10.8 %13.8 % 2.00
Industry Average68.58 Cr211.4626.82106.930.23%14.88%10.56%3.2

Neogen Chemicals Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales81.9585.1892.7084.64113.18132.64156.80147.90148.12186.25203.92170.12168.24
Expenses66.5168.3374.1869.0292.64108.83130.18123.25123.87156.11171.33140.67142.00
Operating Profit15.4416.8518.5215.6220.5423.8126.6224.6524.2530.1432.5929.4526.24
OPM %18.84%19.78%19.98%18.45%18.15%17.95%16.98%16.67%16.37%16.18%15.98%17.31%15.60%
Other Income0.230.140.100.090.240.040.960.960.501.401.771.841.87
Interest3.693.263.503.624.086.365.026.096.866.669.3410.6110.75
Depreciation1.691.771.861.842.333.723.793.893.884.144.294.924.93
Profit before tax10.2911.9613.2610.2514.3713.7718.7715.6314.0120.7420.7315.7612.43
Tax %27.99%28.60%29.49%28.00%22.13%23.89%16.52%28.85%29.41%29.07%30.87%27.54%26.47%
Net Profit7.418.549.357.3811.1910.4815.6711.129.8914.7114.3311.429.14
EPS in Rs3.183.664.013.164.804.496.284.463.975.905.754.583.66

Neogen Chemicals Ltd Quarterly Chart

Neogen Chemicals Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales57667484100110161239306336487686729
Expenses495762718690132196248272401575610
Operating Profit89111314202943586487112118
OPM %13%14%16%15%14%18%18%18%19%19%18%16%16%
Other Income1001001101157
Interest34555810121214192937
Depreciation1111112357121618
Profit before tax556881218294144577170
Tax %32%23%41%37%39%33%39%28%30%29%22%30%
Net Profit34455811212931455050
EPS in Rs13.649.138.0911.312.593.885.3410.4812.3313.4717.9320.0719.89
Dividend Payout %15%22%25%18%77%26%19%14%16%17%15%15%

Neogen Chemicals Ltd Profit & Loss Yearly Chart

Neogen Chemicals Ltd Growth

Compounded Sales Growth
10 Years:26%
5 Years:34%
3 Years:31%
TTM:11%
Compounded Profit Growth
10 Years:28%
5 Years:36%
3 Years:20%
TTM:-21%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:15%
1 Year:6%
Return on Equity
10 Years:17%
5 Years:16%
3 Years:13%
Last Year:11%

Neogen Chemicals Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2444202020202323252525
Reserves111215198223150133160414458472
Preference Capital00000013120000
Borrowings16212524266969108137222229370468
Other Liabilities16161821274161686187131202220
Total Liabilities45556369801521812473554928001,0541,185
Fixed Assets713141317566783111127285347343
CWIP000011103115113697
Investments0000000000817757
Other Assets384249556294112163242250423594687
Total Assets45556369801521812473554928001,0541,185

Neogen Chemicals Ltd Reserves and Borrowings Chart

Neogen Chemicals Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 00399012-4-34831-30
Cash from Investing Activity 00-1-2-4-33-13-20-29-134-146-94
Cash from Financing Activity 00-2-6-433-0246251188100
Net Cash Flow000101-10-1-044-25

Neogen Chemicals Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6867827858107949390858294
Inventory Days191187173178190228192188257211258275
Days Payable14012411712013017714111171122131147
Cash Conversion Cycle118130138136117158145169276174209223
Working Capital Days133132140140126167142163217164190205
ROCE %29%26%26%27%26%23%23%26%22%17%14%13%

Neogen Chemicals Ltd Financial Efficiency Indicators Chart

Neogen Chemicals Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters64.33%64.33%64.33%60.19%60.19%60.19%60.19%60.19%60.18%60.18%60.18%56.89%
FIIs4.78%4.74%4.79%4.42%4.36%4.28%3.74%3.99%4.13%4.30%4.25%4.51%
DIIs14.79%14.05%14.55%18.48%18.64%19.33%19.12%18.89%20.01%19.87%20.25%22.85%
Public16.10%16.88%16.33%16.91%16.81%16.20%16.96%16.93%15.68%15.63%15.32%15.75%
No. of Shareholders18,57825,34627,55434,23639,62638,64240,92649,48851,68647,58145,30047,018

Neogen Chemicals Ltd Shareholding Pattern Chart

No. of Neogen Chemicals Ltd Shareholders

Neogen Chemicals Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Axis Small Cap Fund12178091.03183.91
SBI Large & Midcap Fund9350510.81139.66
SBI Contra Fund8081410.64120.83
Quant Small Cap Fund4275770.5864.57
Sundaram Small Cap Fund2655291.3940.1
Axis Flexi Cap Fund2128010.2932.14
SBI Equity Savings Fund2127110.9831.78
Tata ELSS Tax Saver Fund1995360.8130.13
Axis Special Situations Fund1608971.9724.3
Union Small Cap Fund1582921.9123.91

Neogen Chemicals Ltd ROCE Trend

Neogen Chemicals Ltd EPS Trend

Neogen Chemicals Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)20.0318.7013.4512.2810.43
Diluted EPS (Rs.)20.0318.7013.4512.2810.43
Cash EPS (Rs.)26.4922.5816.3814.5311.85
Book Value[Excl.RevalReserv]/Share (Rs.)193.47176.1278.4366.9634.96
Book Value[Incl.RevalReserv]/Share (Rs.)193.47176.1278.4366.9634.96
Revenue From Operations / Share (Rs.)275.13195.37144.17131.19119.06
PBDIT / Share (Rs.)46.5435.2227.8124.9721.93
PBIT / Share (Rs.)40.0430.5324.8522.7220.52
PBT / Share (Rs.)28.4422.8818.9517.6114.57
Net Profit / Share (Rs.)20.0017.8913.4312.2810.43
NP After MI And SOA / Share (Rs.)20.0417.8913.4312.2810.43
PBDIT Margin (%)16.9118.0219.2819.0318.41
PBIT Margin (%)14.5515.6217.2317.3217.23
PBT Margin (%)10.3311.7113.1413.4212.23
Net Profit Margin (%)7.269.159.319.368.76
NP After MI And SOA Margin (%)7.289.159.319.368.76
Return on Networth / Equity (%)10.3510.1617.1118.3429.83
Return on Capital Employeed (%)15.5013.1018.2325.8631.76
Return On Assets (%)4.745.586.368.078.49
Long Term Debt / Equity (X)0.260.270.630.190.72
Total Debt / Equity (X)0.750.451.100.841.65
Asset Turnover Ratio (%)0.740.750.791.021.12
Current Ratio (X)1.602.261.381.541.37
Quick Ratio (X)0.881.370.720.670.74
Inventory Turnover Ratio (X)1.992.231.482.252.61
Dividend Payout Ratio (NP) (%)13.7211.7614.8912.219.54
Dividend Payout Ratio (CP) (%)10.369.3212.2010.328.40
Earning Retention Ratio (%)86.2888.2485.1187.7990.46
Cash Earning Retention Ratio (%)89.6490.6887.8089.6891.60
Interest Coverage Ratio (X)4.014.604.714.893.69
Interest Coverage Ratio (Post Tax) (X)2.723.343.283.402.75
Enterprise Value (Cr.)3541.314504.162217.48950.090.00
EV / Net Operating Revenue (X)5.169.246.593.100.00
EV / EBITDA (X)30.5151.2834.1816.310.00
MarketCap / Net Operating Revenue (X)4.668.935.992.680.00
Retention Ratios (%)86.2788.2385.1087.7890.45
Price / BV (X)6.639.9111.025.240.00
Price / Net Operating Revenue (X)4.668.936.002.680.00
EarningsYield0.010.010.010.030.00

Neogen Chemicals Ltd Profitability Ratios (%)

Neogen Chemicals Ltd Liquidity Ratios

Neogen Chemicals Ltd Liquidity Ratios (%)

Neogen Chemicals Ltd Interest Coverage Ratios (%)

Neogen Chemicals Ltd Valuation Ratios

Fair Value of Neogen Chemicals Ltd Stock

Fair Value: ₹1751.99

The stock is undervalued by 33.13% compared to the current price ₹1316

*Investments are subject to market risks

Strength and Weakness of Neogen Chemicals Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 22.67%, which is a positive sign.
  2. The company has higher reserves (138.85 cr) compared to borrowings (1.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (264.23 cr) and profit (28.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 27.73 and average Dividend Yield of 16.39%.
  2. The stock has a high average Working Capital Days of 159.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 166.08, which may not be favorable.

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