Fundamental Analysis
Fundamental Analysis of 1 stock (with 180-day horizon)
NEOGEN CHEMICALS LTD.
Ticker: 542665
BUY: ₹1630.00
Target: ₹1850
Neogen Chemicals Ltd, founded in 1991, produces organic and organometallic compounds based on bromine and lithium that are used in the pharmaceutical, agricultural chemicals and engineering industries. On the consolidated basis the net sales in Q4FY23 were recorded at Rs 203.92 crore as compared to Rs 156.80 crore in Q4FY22. Also, the operating profit witnessed a significant jump and stood at Rs 34.32 crore in Q4FY23 as opposed Rs 27.47 crore in Q4FY22. On the other hand, the net profit degrowth in quarterly result, standing at 14.29 crore in Q4FY23 as compared to 15.56 crore in Q4FY22. In addition, the company secured a major arrangement with Japan's MU Ionic Solutions Corporation to acquire a technical licence for manufacturing electrolytes in India. Currently, the company has245 goods in its portfolio and is working on 25 new products in its R&D that have a future demand potential of nearly Rs. 2,000 crore. Neogen intends to start a 1,000 metric tonne electrolyte facility by September to enable the manufacturing of one gigatonne of cells. Hence, we recommend BUY.