NSEI:NEOGEN

Stock Analysis Report

Executive Summary

Neogen Chemicals Limited manufactures and sells bromine-based compounds and other specialty chemical compounds in India.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.

Risks

  • Neogen Chemicals is not covered by any analysts.

Similar Companies

Share Price & News

How has Neogen Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.05%

NEOGEN

3.0%

IN Chemicals

2.0%

IN Market


1 Year Return

n/a

NEOGEN

4.7%

IN Chemicals

-6.1%

IN Market

No trading data on NEOGEN.

No trading data on NEOGEN.


Share holder returns

NEOGENIndustryMarket
7 Day0.05%3.0%2.0%
30 Day5.1%7.9%6.1%
90 Day-9.8%3.5%-3.9%
1 Yearn/a6.0%4.7%-4.3%-6.1%
3 Yearn/a34.5%30.3%20.7%14.6%
5 Yearn/a120.4%107.9%41.3%28.0%

Price Volatility Vs. Market

How volatile is Neogen Chemicals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Neogen Chemicals undervalued based on future cash flows and its price relative to the stock market?

31.08x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Neogen Chemicals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Neogen Chemicals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Neogen Chemicals is overvalued based on earnings compared to the IN Chemicals industry average.

Neogen Chemicals is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Neogen Chemicals, we can't assess if its growth is good value.


Price Based on Value of Assets

Neogen Chemicals is overvalued based on assets compared to the IN Chemicals industry average.


Next Steps

Future Growth

How is Neogen Chemicals expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Neogen Chemicals is high growth as no revenue estimate data is available.

Neogen Chemicals's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Neogen Chemicals's revenue growth to the India market average as no estimate data is available.

Neogen Chemicals's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Neogen Chemicals's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Neogen Chemicals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Neogen Chemicals performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Neogen Chemicals has delivered over 20% year on year earnings growth in the past 5 years.

Neogen Chemicals's 1-year earnings growth exceeds its 5-year average (90.7% vs 34.2%)

Neogen Chemicals's earnings growth has exceeded the IN Chemicals industry average in the past year (90.7% vs 9.3%).


Return on Equity

Whilst Neogen Chemicals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Neogen Chemicals used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Neogen Chemicals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Neogen Chemicals's financial position?


Financial Position Analysis

Neogen Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Neogen Chemicals's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Neogen Chemicals's level of debt (170.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (130% vs 170.9% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is Neogen Chemicals's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield and Payments Analysis

Neogen Chemicals's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.57%).

Neogen Chemicals's dividend is below the markets top 25% of dividend payers in India (2.34%).

It is too early to tell whether Neogen Chemicals has stable dividend payments.

Neogen Chemicals only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Neogen Chemicals's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Haridas Kanani (73yo)

0yrs

Tenure

0

Mr. Haridas Thakarshi Kanani serves as the Chairman and Managing Director at Neogen Chemicals Limited. He oversees the manufacturing, research and development and general operation and management of Neogen ...


Management Age and Tenure

1.2yrs

Average Tenure

46yo

Average Age

The average tenure for the Neogen Chemicals management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

63yo

Average Age

The average tenure for the Neogen Chemicals board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Haridas Kanani (73yo)

    Chairman & MD

    • Tenure: 0yrs
  • Harin Kanani (42yo)

    Joint MD & Director

    • Tenure: 2.7yrs
  • Shyamsunder Upadhyay (65yo)

    Executive Director

    • Tenure: 0yrs
  • Lalit Karne (28yo)

    Company Secretary & Compliance Officer

    • Tenure: 1.2yrs
  • Mahesh Tanna (46yo)

    Chief Financial Officer

    • Tenure: 1.1yrs

Board Members

  • Anurag Surana (54yo)

    Non Executive Director

    • Tenure: 0yrs
  • Sanjay Mehta (69yo)

    Independent Director

    • Tenure: 4.9yrs
  • Haridas Kanani (73yo)

    Chairman & MD

    • Tenure: 0yrs
  • Hitesh Reshamwala (54yo)

    Independent Director

    • Tenure: 4.9yrs
  • Harin Kanani (42yo)

    Joint MD & Director

    • Tenure: 2.7yrs
  • Shyamsunder Upadhyay (65yo)

    Executive Director

    • Tenure: 0yrs
  • Ranjan Malik (69yo)

    Independent Director

    • Tenure: 0.9yrs
  • Avi Sabavala (61yo)

    Independent Director

    • Tenure: 0.9yrs

Company Information

Neogen Chemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neogen Chemicals Limited
  • Ticker: NEOGEN
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹7.566b
  • Shares outstanding: 23.33m
  • Website: https://www.neogenchem.com

Number of Employees


Location

  • Neogen Chemicals Limited
  • Dev Corpora Building
  • Office No. 1002, 10th Floor
  • Thane
  • Maharashtra
  • 400601
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
542665BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2019
NEOGENNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2019

Biography

Neogen Chemicals Limited manufactures and sells bromine-based compounds and other specialty chemical compounds in India. It offers organic chemicals, such as bromine compounds; and non-bromine specialty ch ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 13:02
End of Day Share Price2019/09/20 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.