NSEI:NEOGEN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Neogen Chemicals Limited manufacturers of bromine and lithium based specialty chemicals in India.


Snowflake Analysis

High growth potential with proven track record.


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

Stable Share Price: NEOGEN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.3%

NEOGEN

0.5%

IN Chemicals

-0.3%

IN Market


1 Year Return

82.3%

NEOGEN

16.9%

IN Chemicals

2.0%

IN Market

Return vs Industry: NEOGEN exceeded the Indian Chemicals industry which returned 17.2% over the past year.

Return vs Market: NEOGEN exceeded the Indian Market which returned 1.6% over the past year.


Shareholder returns

NEOGENIndustryMarket
7 Day15.3%0.5%-0.3%
30 Day16.3%3.7%3.8%
90 Day40.2%13.4%19.7%
1 Year83.1%82.3%19.6%16.9%3.9%2.0%
3 Yearn/a28.8%21.4%-0.6%-5.3%
5 Yearn/a96.6%79.9%27.0%17.4%

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 compared to its fair value and its price relative to the market?

49.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEOGEN (₹611) is trading above our estimate of fair value (₹75.03)

Significantly Below Fair Value: NEOGEN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEOGEN is poor value based on its PE Ratio (49.8x) compared to the IN Chemicals industry average (11.8x).

PE vs Market: NEOGEN is poor value based on its PE Ratio (49.8x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: NEOGEN is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: NEOGEN is overvalued based on its PB Ratio (9.1x) compared to the IN Chemicals industry average (1x).


Next Steps

Future Growth

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

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEOGEN's forecast earnings growth (27.8% per year) is above the savings rate (7.2%).

Earnings vs Market: NEOGEN's earnings (27.8% per year) are forecast to grow faster than the Indian market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NEOGEN's revenue (18.5% per year) is forecast to grow faster than the Indian market (9.6% per year).

High Growth Revenue: NEOGEN's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEOGEN's Return on Equity is forecast to be high in 3 years time (25%)


Next Steps

Past Performance

How has Neogen Chemicals performed over the past 5 years?

31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEOGEN has a high level of non-cash earnings.

Growing Profit Margin: NEOGEN's current net profit margins (9.4%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: NEOGEN's earnings have grown significantly by 31% per year over the past 5 years.

Accelerating Growth: NEOGEN's earnings growth over the past year (36.6%) exceeds its 5-year average (31% per year).

Earnings vs Industry: NEOGEN earnings growth over the past year (36.6%) exceeded the Chemicals industry 3.7%.


Return on Equity

High ROE: NEOGEN's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is Neogen Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: NEOGEN's short term assets (₹2.3B) exceed its short term liabilities (₹1.5B).

Long Term Liabilities: NEOGEN's short term assets (₹2.3B) exceed its long term liabilities (₹487.4M).


Debt to Equity History and Analysis

Debt Level: NEOGEN's debt to equity ratio (84.7%) is considered high.

Reducing Debt: NEOGEN's debt to equity ratio has reduced from 102.9% to 84.7% over the past 5 years.

Debt Coverage: NEOGEN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NEOGEN's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEOGEN's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.66%).

High Dividend: NEOGEN's dividend (0.33%) is low compared to the top 25% of dividend payers in the Indian market (2.76%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NEOGEN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NEOGEN's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.3%), NEOGEN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEOGEN's dividends in 3 years are forecast to be thoroughly covered by earnings (11.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average board tenure


CEO

Haridas Kanani (74 yo)

no data

Tenure

₹4,762,100

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Haridas's total compensation ($USD63.32K) is below average for companies of similar size in the Indian market ($USD328.40K).

Compensation vs Earnings: Haridas's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Haridas Kanani
Chairman & MDno data₹4.76m55.74%
₹ 7.7b
Harin Kanani
Joint MD & Director3.58yrs₹4.30m8.59%
₹ 1.2b
Shyamsunder Upadhyay
Executive Directorno data₹4.13m0.00034%
₹ 47.1k
Anurag Surana
Non Executive Directorno datano data1.29%
₹ 178.0m
Sanjay Mehta
Independent Director5.83yrs₹60.00k0.011%
₹ 1.5m
Hitesh Reshamwala
Independent Director5.83yrs₹120.00k0.00015%
₹ 20.8k
Ranjan Malik
Independent Director1.83yrs₹100.00kno data
Avi Sabavala
Independent Director1.83yrs₹50.00kno data

3.6yrs

Average Tenure

64yo

Average Age

Experienced Board: NEOGEN's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NEOGEN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹13.848b
  • 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 manufacturers of bromine and lithium based specialty chemicals in India. It offers organic chemicals, such as alkyl bromide compounds, dibromo alkane compounds, and bromo chloro al ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 12:41
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.