Update shared on 27 Nov 2025
Analysts have maintained Neogen Chemicals' price target at $1,806.57, citing stable growth expectations and aligning their assessment with the recent initiation of a Market Perform rating by the Street.
Analyst Commentary
Bullish Takeaways
- Bullish analysts note Neogen Chemicals' consistent revenue growth, which supports the current valuation and underpins the stable price target.
- The company's exposure to specialty chemicals is viewed as a positive factor. This exposure offers opportunities for steady market share gains in a high-demand sector.
- Solid execution in recent quarters is seen as a key strength. Strong operational discipline contributes to confidence in management's long-term strategy.
- Analysts also emphasize Neogen's broad customer base. This diversity helps mitigate risk and provides a foundation for continued stable growth.
Bearish Takeaways
- Bearish analysts express caution regarding the company's ability to accelerate growth beyond current levels, especially given industry competition.
- Uncertainties about margin expansion are highlighted. Input costs and pricing pressures could challenge profitability in the near term.
- There are concerns that the current valuation fairly prices in most positives, which may limit upside potential in the short to medium term.
- Bearish analysts also point to execution risks if macroeconomic headwinds or supply chain disruptions intensify. These factors could potentially impact forecasted growth.
What's in the News
- Board meeting scheduled on November 8, 2025, to consider and approve financial results for the quarter and half year ended September 30, 2025, as well as other matters (Key Developments).
- Standalone revenue guidance for fiscal year 2025-26 set at INR 7,750 million to INR 8,500 million. This reflects updates following the Dahej fire (Key Developments).
- Neogen Ionics Limited approved a joint venture agreement with Morita Investment Limited to produce and develop solid LiPF6 salt, which is a crucial material for lithium-ion batteries (Key Developments).
Valuation Changes
- Consensus Analyst Price Target remains unchanged at ₹1,806.57, reflecting stable market expectations.
- The Discount Rate has risen slightly from 14.26% to 14.31%, indicating a marginal increase in the required rate of return.
- Revenue Growth has increased very slightly from 49.70% to 49.74%, signaling expectations of nearly steady sales expansion.
- Net Profit Margin is virtually unchanged and holds at approximately 7.32%.
- The Future P/E has edged up marginally from 35.65x to 35.69x, implying only a slight change in forward earnings valuation.
Disclaimer
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