ScoreWhy is Neogen Chemicals Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.34 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.34 times
- The company has been able to generate a Return on Equity (avg) of 6.86% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 13.82% of over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- PAT(Latest six months) At Rs 7.06 cr has Grown at -66.33%
- ROCE(HY) Lowest at 5.72%
- OPERATING PROFIT TO INTEREST (Q) Lowest at 1.48 times
4
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 20-May-26 and has generated 3.2% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV
5
With ROCE of 5, it has a Very Expensive valuation with a 2.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 8.42%, its profits have fallen by -34.9%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Neogen Chemicals should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Neogen Chemicals for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Neogen Chemicals
55.64%
0.18
46.55%
Sensex
-1.65%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.86%
EBIT Growth (5y)
15.92%
EBIT to Interest (avg)
2.50
Debt to EBITDA (avg)
4.82
Net Debt to Equity (avg)
1.70
Sales to Capital Employed (avg)
0.65
Tax Ratio
28.94%
Dividend Payout Ratio
7.57%
Pledged Shares
23.00%
Institutional Holding
23.71%
ROCE (avg)
9.91%
ROE (avg)
6.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
170
Industry P/E
44
Price to Book Value
7.41
EV to EBIT
59.94
EV to EBITDA
48.29
EV to Capital Employed
3.37
EV to Sales
8.03
PEG Ratio
NA
Dividend Yield
0.04%
ROCE (Latest)
4.97%
ROE (Latest)
3.52%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
NET SALES(Q)
Highest at Rs 250.29 cr
PBDIT(Q)
Highest at Rs 48.23 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 19.27%
PBT LESS OI(Q)
Highest at Rs 19.42 cr.
PAT(Q)
Highest at Rs 17.11 cr.
EPS(Q)
Highest at Rs 6.25
-13What is not working for the Company
INTEREST(9M)
At Rs 63.79 cr has Grown at 42.87%
ROCE(HY)
Lowest at 5.25%
DEBT-EQUITY RATIO(HY)
Highest at 1.71 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 4.95 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.27 times
Loading Valuation Snapshot...
Here's what is working for Neogen Chemicals
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 19.42 cr has Grown at 122.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 8.73 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 17.11 cr has Grown at 138.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 7.18 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 250.29 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 48.23 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 19.27%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 19.42 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 17.11 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.25
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Neogen Chemicals
Interest - Nine Monthly
At Rs 63.79 cr has Grown at 42.87%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.71 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 4.95 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 2.27 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 3.86 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
