Neogen Chemicals Ltd., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 2088.56 Crore) operating in Chemicals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 92.72 Crore, up 8.81 % from last quarter Total Income of Rs 85.21 Crore and up 12.65 % from last year same quarter Total Income of Rs 82.31 Crore. Company reported net profit after tax of Rs 9.27 Crore in latest quarter.
Investment Rationale
Revival in industrial activity should have helped inorganic chemical segment volume growth. For organic chemical, the company started trial production at Dahej in the beginning of the quarter. Ramp up in the activity should have assisted growth in the organic chemical segment. Topline is expected to remain at Rs 103 crore (up 34.5% YoY). OPM is likely to expand 304 bps YoY to 20.7% leading to EBITDA growth of 57.6% YoY to Rs 21.4 crore. PAT is expected to increase by 68.8% YoY to Rs 10.3 crore. Key Monitorables: Commissioning of Dahej organic chemical capacity and outcome on the negotiation with three to four new players for incremental custom synthesis opportunity.
Promoter/FII Holdings
Promoters held 64.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 4.8 per cent, DIIs 16.2 per cent and public and others 14.7 per cent.
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