Chemicals & Petrochemicals
Valuation | |
|---|---|
| Market Cap | 3.6 kCr |
| Price/Earnings (Trailing) | 138.04 |
| Price/Sales (Trailing) | 4.47 |
| EV/EBITDA | 37.88 |
| Price/Free Cashflow | -32.46 |
| MarketCap/EBT | 94.43 |
| Enterprise Value | 4.66 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 12.1% |
| Price Change 1M | 22.8% |
| Price Change 6M | -3.8% |
| Price Change 1Y | -37.2% |
| 3Y Cumulative Return | 5.2% |
| 5Y Cumulative Return | 14.1% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) |
| Revenue (TTM) |
| 804.36 Cr |
| Rev. Growth (Yr) | 8.4% |
| Earnings (TTM) | 26.05 Cr |
| Earnings Growth (Yr) | -69.3% |
Profitability | |
|---|---|
| Operating Margin | 6% |
| EBT Margin | 5% |
| Return on Equity | 3.26% |
| Return on Assets | 1.13% |
| Free Cashflow Yield | -3.08% |
| Cash Flow from Operations (TTM) | 195.98 Cr |
| Cash Flow from Financing (TTM) | 113.07 Cr |
| Cash & Equivalents | 11.32 Cr |
| Free Cash Flow (TTM) | -121.69 Cr |
| Free Cash Flow/Share (TTM) | -46.13 |
Balance Sheet | |
|---|---|
| Total Assets | 2.3 kCr |
| Total Liabilities | 1.5 kCr |
| Shareholder Equity | 799.8 Cr |
| Current Assets | 1.32 kCr |
| Current Liabilities | 836.7 Cr |
| Net PPE | 373.31 Cr |
| Inventory | 437.17 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.47 |
| Debt/Equity | 1.35 |
| Interest Coverage | -0.34 |
| Interest/Cashflow Ops | 4.82 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 1 |
| Dividend Yield | 0.07% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 5.8% |
Momentum: Stock price has a strong positive momentum. Stock is up 22.8% in last 30 days.
Balance Sheet: Reasonably good balance sheet.
Smart Money: Smart money is losing interest in the stock.
Past Returns: In past three years, the stock has provided 5.2% return compared to 13% by NIFTY 50.
Momentum: Stock price has a strong positive momentum. Stock is up 22.8% in last 30 days.
Balance Sheet: Reasonably good balance sheet.
Smart Money: Smart money is losing interest in the stock.
Past Returns: In past three years, the stock has provided 5.2% return compared to 13% by NIFTY 50.
Investor Care | |
|---|---|
| Dividend Yield | 0.07% |
| Dividend/Share (TTM) | 1 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 9.88 |
Financial Health | |
|---|---|
| Current Ratio | 1.58 |
| Debt/Equity | 1.35 |
Technical Indicators | |
|---|---|
| RSI (14d) | 54.33 |
| RSI (5d) | 93.18 |
| RSI (21d) | 66.12 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Sell |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal |
Summary of Neogen Chemicals's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Management's outlook during the Q2 FY26 Earnings Conference Call highlighted a resilient operational performance, with key forward-looking points for the upcoming periods. The organization reported an 8% revenue growth in Q2 FY26, achieving a gross profit increase of 16%. However, EBITDA and PAT were impacted by elevated operating costs, following the temporary outage at the Dahej plant, which has been counterbalanced through production shifts to alternate facilities and outsourced partners.
Looking ahead, management anticipates significant developments in their battery chemicals segment. They are on track to complete the mechanical aspects of the greenfield facility for electrolyte production by the end of 2025, aiming for trial production in the first half of FY27 (April-September 2026) and full-scale commercial production of electrolyte salt in H2 FY27. The management expects a robust demand in H2 FY27, driven by compliance needs from US lithium-ion battery players facing Foreign Entities of Concern (FEOC) regulations.
Key financial metrics were provided as guidance for future periods. For FY26, management revised revenue expectations for battery chemicals to be approximately INR 30 crore to INR 40 crore. They foresee FY27 revenues for the battery chemicals segment in the range of INR 400 crore to INR 500 crore. Full utilization is targeted for FY29 with expected revenue potential of INR 2,400 crore to INR 2,900 crore.
Notable developments include the partnership with Morita Investments to establish an Indo-Japan joint venture focused on solid LiPF6 salt production, strengthening their position in the lithium battery market. Additionally, forthcoming insurance claims and funding from new capital arrangements are expected to stabilize financial health and support further operational investments. Overall, management conveys confidence in navigating current challenges and leveraging strategic partnerships for sustainable growth.
Understand Neogen Chemicals ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Haridas Kanani Family Trust (Beena Haridas Kanani and Harin Haridas Kanani) | 20% |
| Harin Haridas Kanani | 12.65% |
| Beena Kanani Family Trust (Haridas Thakarshi Kanani and Harin Haridas Kanani) | 10% |
| Sbi Contra Fund | 8.85% |
| Axis Mutual Fund Trustee Limited A/C Axis Mutual Fund A/C Axis Small Cap Fund | 6% |
| Pallika Haridas Kanani | 3.78% |
Detailed comparison of Neogen Chemicals against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| AARTIIND | Aarti Industries | 16.45 kCr | 8.05 kCr | +20.90% | -2.60% | 58.38 | 2.04 | - | - |
| VINATIORGA | Vinati Organics | 15.87 kCr |
Comprehensive comparison against sector averages
NEOGEN metrics compared to Chemicals
| Category | NEOGEN | Chemicals |
|---|---|---|
| PE | 138.04 | 44.72 |
| PS | 4.47 | 4.17 |
| Growth | 8.2 % | 6.2 % |
Neogen Chemicals Limited engages in the manufacture and sale of 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; and organo lithium compounds, including n-butyl lithium, lithium hexamethyldisilazide, lithium tetrahydride borate, lithium diisopropylamide, lithium tri-(t-butoxy) aluminium hydride, hexyl lithium, methyl lithium, and phenyl lithium. The company also provides inorganic chemicals comprising inorganic bromine compounds and lithium salts; grignard reagents; and advance intermediates; as well as chemistries, such as alkylation, acylation, aminatin, oxidation, dehalogenation, silylation, halex reaction, friedel craft, couplings, and chlorination; custom synthesis; and contract manufacturing services. It serves pharmaceuticals, agrochemicals, engineering, electronics, polymers, water treatment, construction, aroma chemicals, flavours and fragrances, and specialty polymers industries, as well as vapour absorption chillers. The company also exports its products to 31 countries. Neogen Chemicals Limited was incorporated in 1989 and is based in Thane, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
NEOGEN vs Chemicals (2021 - 2026)
1. Question from Arun Prasath: "What is driving the delay in orders from overseas customers for salt? How confident are we that the current guidance will stand true, especially regarding the larger facility?"
Answer: The delay stemmed from regulatory requirements and the ramp-up schedules of Indian Giga factories like Ola and Exide, which now expect to start production in early 2026. We anticipate a stronger demand for electrolytes from Q4 FY26 onward. For the salt, we expect commercial production to occur in FY27. Our confidence in meeting guidance is backed by the necessity for customers to switch to non-FEOC compliant sources by 2027.
2. Follow-up Question from Arun Prasath: "Will the approvals for the Greenfield facility follow the same procedures as before or be fast-tracked?"
Answer: The approvals for the Greenfield facility will be on a fast track. Given that it will use transferred technology and incorporate customer suggestions from previous audits, we expect trial production to start in Q1 FY27 and commercial salt production by Q2 FY27.
3. Question from Abhijit Akella: "Could you update your guidance for the battery chemical business considering the delays?"
Answer: Due to the lower electrolyte demand, we will not meet our initial INR 300 crore guidance for FY26, now estimating around INR 30 crore to INR 40 crore. For FY27, we expect to achieve around INR 400 crore to INR 500 crore in revenue, depending on how swiftly customers transition to our offerings.
4. Question from Archit Joshi: "What role does the PPAP play in our agreements with customers?"
Answer: PPAP approval indicates successful quality validation and capacity capability needed for commercial supply. We already have volume commitments for electrolyte salts, and PPAP approval for electrolytes is expected by January 2026. This positions us well with Indian gigafactories as the lone facility with PPAP approval.
5. Question from Jason Soans: "What is causing the delay in insurance payouts?"
Answer: Delays were due to the insurance company's rigorous testing to confirm the cause of the fire. Currently, we've received an interim payment for rebuilding claims and anticipate receiving stock-related claim amounts in Q3 FY26, while final claims will be processed as the plant is ready.
6. Final Question from Tej: "How do suppliers in India comply with non-FEOC requirements considering their reliance on Chinese sources?"
Answer: Complete compliance requires a non-FEOC supply chain. While Indian producers may initially depend on imports, they are encouraged to adopt local production to meet government stipulations. As our electrolyte salt plant comes online, we aim to position ourselves as supplier of choice for domestic manufacturers looking to meet these requirements.
| H T Kanani Family Trust (Beena Haridas Kanani and Pallika Haridas Kanani) | 1.9% |
| Beena Haridas Kanani | 1.42% |
| Haridas Thakarshi Kanani | 1.42% |
| Malabar India Fund Limited | 1.31% |
| Sundaram Mutual Fund A/C Sundaram Small Cap Fund | 1.28% |
| Ashoka Whiteoak Icav - Ashoka Whiteoak India Opportunities Fund | 1.05% |
| National Insurance Company Ltd | 1% |
| Asha Deepak Dalal | 0.01% |
| Malia Harshida Kishor | 0.01% |
| Vanita Madhwani | 0.01% |
| Samika Kanani | 0% |
| Arun Gandhi HUF | 0% |
| R K Gandhi HUF | 0% |
| Hargovind Kanani | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
| 2.31 kCr |
| -5.20% |
| -13.60% |
| 35.83 |
| 6.87 |
| - |
| - |
| JUBLINGREA | Jubilant Ingrevia | 10.12 kCr | 4.3 kCr | -15.80% | -15.80% | 37.79 | 2.35 | - | - |
| ALKYLAMINE | Alkyl Amines Chemicals | 7.95 kCr | 1.57 kCr | +0.20% | -13.10% | 44 | 5.07 | - | - |
| BALAMINES | Balaji Amines | 3.58 kCr | 1.41 kCr | +3.10% | -36.40% | 24.98 | 2.54 | - | - |
| -68.8% |
| 5.06 |
| 14 |
| 18 |
| 15 |
| 15 |
| 16 |
| Exceptional items before tax | - | 0 | 0 | -14.08 | 0 | 0 | 0 |
| Total profit before tax | -68.8% | 5.06 | 14 | 3.63 | 15 | 15 | 16 |
| Current tax | -28.5% | 3.76 | 4.86 | 7.12 | 4.99 | 4.17 | 3.63 |
| Deferred tax | -62.8% | -1.98 | -0.83 | -5.85 | 0.25 | 0.35 | 0.66 |
| Total tax | -74.3% | 1.78 | 4.03 | 1.27 | 5.24 | 4.52 | 4.29 |
| Total profit (loss) for period | -73.7% | 3.37 | 10 | 2.41 | 10 | 11 | 11 |
| Other comp. income net of taxes | 0% | -0.11 | -0.11 | -0.09 | -0.12 | -0.1 | -0.13 |
| Total Comprehensive Income | -74.9% | 3.26 | 10 | 2.32 | 9.89 | 11 | 11 |
| Earnings Per Share, Basic | -90.3% | 1.28 | 3.89 | 0.91 | 3.8 | 4.15 | 4.35 |
| Earnings Per Share, Diluted | -90.3% | 1.28 | 3.89 | 0.91 | 3.8 | 4.15 | 4.35 |
| 51 |
| 41 |
| 29 |
| 19 |
| 14 |
| 12 |
| Depreciation and Amortization | 31.6% | 26 | 20 | 16 | 12 | 6.9 | 5.24 |
| Other expenses | 11.5% | 146 | 131 | 139 | 94 | 54 | 47 |
| Total Expenses | 9.5% | 703 | 642 | 620 | 431 | 293 | 265 |
| Profit Before exceptional items and Tax | 25.4% | 80 | 64 | 71 | 57 | 44 | 41 |
| Exceptional items before tax | - | -13.56 | 0 | 0 | 0 | 0 | 0 |
| Total profit before tax | 3.2% | 66 | 64 | 71 | 57 | 44 | 41 |
| Current tax | 72.7% | 20 | 12 | 13 | 9.87 | 10 | 11 |
| Deferred tax | -144.5% | -1.82 | 7.33 | 8.3 | 2.57 | 2.51 | 0.96 |
| Total tax | -10.5% | 18 | 20 | 21 | 12 | 13 | 12 |
| Total profit (loss) for period | 9.3% | 48 | 44 | 50 | 45 | 31 | 29 |
| Other comp. income net of taxes | 11.6% | -0.37 | -0.55 | 0.28 | -0.28 | 0.06 | -0.53 |
| Total Comprehensive Income | 9.3% | 48 | 44 | 50 | 44 | 31 | 28 |
| Earnings Per Share, Basic | 6.8% | 18.35 | 17.25 | 20.07 | 18.74 | 13.5 | 12.33 |
| Earnings Per Share, Diluted | 6.8% | 18.35 | 17.25 | 20.07 | 18.74 | 13.5 | 12.33 |
| 198 |
| 198 |
| 361 |
| 339 |
| 336 |
| 339 |
| Capital work-in-progress | 96.3% | 54 | 28 | 27 | 0 | 97 | 36 |
| Investment property | - | 0 | - | 0 | 56 | 0 | 0 |
| Non-current investments | 55.7% | 300 | 193 | 212 | 25 | 21 | 0.45 |
| Loans, non-current | -8.8% | 84 | 92 | 40 | 123 | 8.03 | 0 |
| Total non-current financial assets | 39.3% | 416 | 299 | 261 | 156 | 29 | 7.92 |
| Total non-current assets | 32.5% | 735 | 555 | 655 | 583 | 476 | 398 |
| Total assets | 20.2% | 1,949 | 1,621 | 1,474 | 1,378 | 1,185 | 1,054 |
| Borrowings, non-current | 406.4% | 239 | 48 | 100 | 124 | 135 | 129 |
| Total non-current financial liabilities | 286.3% | 283 | 74 | 119 | 132 | 142 | 133 |
| Provisions, non-current | 11.1% | 11 | 10 | 9.68 | 8.3 | 6.06 | 4.65 |
| Total non-current liabilities | 199% | 315 | 106 | 157 | 166 | 170 | 162 |
| Borrowings, current | 22% | 483 | 396 | 349 | 259 | 327 | 233 |
| Total current financial liabilities | 16.9% | 790 | 676 | 512 | 425 | 510 | 404 |
| Provisions, current | 4.2% | 3.95 | 3.83 | 1.18 | 1.19 | 3.32 | 2.08 |
| Current tax liabilities | -73.9% | 2.6 | 7.14 | 3.58 | 3.46 | 3.03 | 1.76 |
| Total current liabilities | 13.7% | 804 | 707 | 532 | 447 | 518 | 410 |
| Total liabilities | 37.8% | 1,120 | 813 | 689 | 613 | 688 | 571 |
| Equity share capital | 0% | 26 | 26 | 26 | 26 | 25 | 25 |
| Total equity | 2.5% | 829 | 809 | 785 | 765 | 497 | 483 |
| Total equity and liabilities | 20.2% | 1,949 | 1,621 | 1,474 | 1,378 | 1,185 | 1,054 |
| - |
| -7.17 |
| 0 |
| 0 |
| 0 |
| - |
| - |
| Income taxes paid (refund) | - | 12 | 0 | 12 | 9.8 | - | - |
| Net Cashflows From Operating Activities | 270.4% | 199 | -115.23 | -30.35 | 1.2 | - | - |
| Cashflows used in obtaining control of subsidiaries | -104.3% | 0 | 24 | 0 | 0 | - | - |
| Cash receipts from share of profits of partnership firm or association of persons or LLP | 11.1% | 0.2 | 0.1 | 0 | 0 | - | - |
| Proceeds from sales of PPE | -101% | 0.48 | 52 | 0 | 0.11 | - | - |
| Purchase of property, plant and equipment | -71.2% | 33 | 112 | 102 | 170 | - | - |
| Purchase of intangible assets | 2% | 0.03 | 0.01 | 1.25 | -0.17 | - | - |
| Cash receipts from repayment of advances and loans made to other parties | 54.7% | 117 | 76 | 0 | 0 | - | - |
| Interest received | -22.4% | 6.84 | 8.53 | 4.51 | 1.29 | - | - |
| Other inflows (outflows) of cash | - | 0 | 0 | 4.77 | 23 | - | - |
| Net Cashflows From Investing Activities | -53.8% | -188.44 | -122.21 | -94.46 | -145.62 | - | - |
| Proceeds from issuing shares | - | 0 | 0 | 0 | 225 | - | - |
| Proceeds from issuing other equity instruments | -100.4% | 0 | 247 | 0 | 0 | - | - |
| Proceeds from borrowings | 116.1% | 122 | 57 | 226 | 39 | - | - |
| Repayments of borrowings | 108.8% | 72 | 35 | 90 | 43 | - | - |
| Payments of lease liabilities | 318.1% | 6.31 | 2.27 | 0 | 0 | - | - |
| Dividends paid | -34% | 5.28 | 7.48 | 6.86 | 5.25 | - | - |
| Interest paid | - | 51 | 0 | 29 | 19 | - | - |
| Income taxes paid (refund) | - | 0 | 0 | 0 | 0.77 | - | - |
| Other inflows (outflows) of cash | 97.6% | 0 | -40.83 | 0 | -7.31 | - | - |
| Net Cashflows from Financing Activities | -106.1% | -12.14 | 217 | 100 | 188 | - | - |
| Net change in cash and cash eq. | 86.6% | -1.82 | -20 | -24.52 | 44 | - | - |