Mehabe score: 6 G Factor: 5 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 5.
Description
Neogen Chemicals Ltd is a 27 year old company. specialising in Bromine based compounds, Grignard. Reagents and Inorganic Lithium Salts.Site:NEOGENMain Symbol:NEOGEN
Stock trades at 932.0, above its 50dma 887.15. It also trades above its 200dma 799.27. The stock remains bullish on techicals
The 52 week high is at 1028.00 and the 52week low is at 590.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 43.33% CAGR over last 5 years
Weakness
– Stock is trading at 11.89 times its book value
Competition
– The industry trades at a mean P/E of 28.1x. Pidilite Inds. trades at the industry’s max P/E of 99.87x. NEOGEN trades at a P/E of 66.8x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. NEOGEN has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 6.6%. The max 1- month return was given by Alkyl Amines: a return of 16.23 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 84.64 cr compared to Rs 76.59 cr for period ended Jun 2020, a rise of 10.5%
Operating Profits reported at Rs 15.62 cr for period ended Jun 2021 vis-vis 13.56 for period ended Jun 2020 .
Operating Margins expanded 75.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.15 compared to Rs 3.99 for previous quarter ended Mar 2021 and Rs 2.62 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 344.0 cr for period ended TTM vis-vis sales of Rs 336.0 cr for the period ended Mar 2021, a growth of 2.3%. The 3 year sales cagr stood at 12.9%.
Net Profit reported at Rs 33.0 cr for period ended TTM vis-vis sales of Rs 31.0 cr for the period ended Mar 2021, rising 6.1%.
Company recorded a healthy Net Profit CAGR of 16.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 84.0 cr for period ended Mar 2021 vis-vis Rs -35.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 22.0% over the last 3 Years. – The stock has given a return of 43% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of 28% over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of 42% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 4.74% vis-vis 4.78% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 16.88% vis-vis 16.1% for Mar 2021
Conclusion
– has delivered good profit growth of 43.33% CAGR over last 5 years – Stock is trading at 11.89 times its book value
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 887.15 and is trading at 932.0, thus bullish price action wise.
