ScoreWhy is Neogen Chemicals Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.01 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.01 times
- The company has been able to generate a Return on Equity (avg) of 9.65% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 14.16% of over the last 5 years
3
The company has declared negative results for the last 2 consecutive quarters
- PAT(Q) At Rs 3.37 cr has Fallen at -68.5% (vs previous 4Q average)
- ROCE(HY) Lowest at 5.72%
- INTEREST(Q) At Rs 19.48 cr has Grown at 53.75%
4
With ROCE of 5.9, it has a Expensive valuation with a 2.2 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -50.35%, its profits have fallen by -12.7%
5
Below par performance in long term as well as near term
- Along with generating -50.35% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Neogen Chemicals should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Neogen Chemicals for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Neogen Chemicals
19.36%
-1.04
48.26%
Sensex
-4.88%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.70%
EBIT Growth (5y)
13.82%
EBIT to Interest (avg)
2.60
Debt to EBITDA (avg)
4.82
Net Debt to Equity (avg)
1.70
Sales to Capital Employed (avg)
0.65
Tax Ratio
30.06%
Dividend Payout Ratio
7.57%
Pledged Shares
23.00%
Institutional Holding
25.95%
ROCE (avg)
9.91%
ROE (avg)
6.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
186
Industry P/E
42
Price to Book Value
6.53
EV to EBIT
61.24
EV to EBITDA
48.96
EV to Capital Employed
3.05
EV to Sales
7.80
PEG Ratio
NA
Dividend Yield
0.05%
ROCE (Latest)
4.97%
ROE (Latest)
3.52%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
PBT LESS OI(Q)
At Rs 14.87 cr has Grown at 59.8% (vs previous 4Q average
PAT(Q)
At Rs 11.39 cr has Grown at 57.4% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 246.56 cr
PBDIT(Q)
Highest at Rs 43.91 cr.
EPS(Q)
Highest at Rs 4.32
-19What is not working for the Company
PAT(Latest six months)
At Rs 15.08 cr has Grown at -30.32%
INTEREST(Latest six months)
At Rs 42.98 cr has Grown at 33.69%
ROCE(HY)
Lowest at 5.25%
DEBT-EQUITY RATIO(HY)
Highest at 1.71 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 4.95 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.27 times
Loading Valuation Snapshot...
Here's what is working for Neogen Chemicals
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 14.87 cr has Grown at 59.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 9.30 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 11.39 cr has Grown at 57.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 7.24 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 246.56 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 246.56 cr has Grown at 20.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 204.56 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 43.91 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 4.32
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Neogen Chemicals
Interest - Latest six months
At Rs 42.98 cr has Grown at 33.69%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.71 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 4.95 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 2.27 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
