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Check Before You Invest : Neogen Chemicals Ltd

BSE: 542665 NSE: NEOGEN ISIN: INE136S01016
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Neogen Chemicals Ltd belong to?
Neogen Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Neogen Chemicals Ltd a good quality company?
Neogen Chemicals Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Neogen Chemicals Ltd undervalued or overvalued?
Neogen Chemicals Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Neogen Chemicals Ltd a good buy now?
Neogen Chemicals Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Neogen Chemicals Ltd?
Neogen Chemicals Ltd revenue growth is 11.1% for FY-2025 , which is below its 5 year CAGR of 20.4% , indicating slower growth.
Q.2 Gross Profit margin of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.6% for FY-2025 , which is above its 5 year median of 12.8% , indicating increasing margins.
Q.3 Operating Profit Margin of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.02% for FY-2025 , which is above its 5 year median of 17.77% indicating increasing margins.
Q.4 Net Profit Margin of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Net Profit Margin is 6.26% for FY-2025 , is below with its 5 year median of 7.29%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 13.6 12.8
Operating Profit Margin 19.02 17.77
Net Profit Margin 6.26 7.29
Q.5 Return on Asset of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Return on Asset is 3.2%, which is below its 5 year historical median of 5.4%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Return on equity is 6.15% for FY-2025 , which is below its historical median of 10.86%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Return on capital employed is 9.76% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Cash conversion cycle is 174 days, above its historical median of 130 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.51 0.74
ROE 6.15 10.86
ROCE 9.76 13.26
Cash Conversion Cycle 174 days 130 days
Q.9 Debt to Equity ratio of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Debt-to-Equity ratio is 0.55 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Neogen Chemicals Ltd?
Neogen Chemicals Ltd Debt to cash flow from operations is 2.23 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Neogen Chemicals Ltd?
Promoters hold 51.23% of the Neogen Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Neogen Chemicals Ltd vs industry peers?
Neogen Chemicals Ltd revenue CAGR is 20.37% , compared to the industry median CAGR of 7.7% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 773.7 202
Gross Profit 105.3 23.6
Operating Profit 147 24
Net Profit 48 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.51 0.93
ROE 6.15 10.18
ROCE 9.76 13.07
Cash Conversion Cycle (days) 174.29 62

Valuation & price assessment

Q.1 Stock return of Neogen Chemicals Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 11.47% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 11.5% -2.7% -6.4%
Q.3 Valuation ratios of Neogen Chemicals Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 106.08 75.99 41.15
Price to Book 4.75 7.74 2.38
Price to Sales 4.91 6.98 1.93
EV to EBITDA 29.07 41.09 13.71

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