Buy Neogen Chemicals, target price Rs 1515: ICICI Direct

ICICI Direct has buy call on Neogen Chemicals with a target price of Rs 1515. The current market price of Neogen Chemicals Ltd. is Rs 1283.95.

Time period given by analyst is one year when Neogen Chemicals Ltd. price can reach defined target.

Neogen Chemicals Ltd., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 3090.67 Crore) operating in Chemicals sector.


Neogen Chemicals Ltd. key Products/Revenue Segments include Organic/Inorganic Heavy Chemicals and Other Operating Revenue for the year ending 31-Mar-2020.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 84.67 Crore, down -8.68 % from last quarter Total Income of Rs 92.72 Crore and up 10.48 % from last year same quarter Total Income of Rs 76.64 Crore. Company reported net profit after tax of Rs 7.32 Crore in latest quarter.

Investment Rationale
The stock appreciated at 80% CAGR in last two years. The brokerage retains BUY rating on the back of better growth outlook of the custom synthesis business

Promoter/FII Holdings
Promoters held 64.3 per cent stake in the company , FIIs held 4.7 per cent, DIIs 14 per cent and public and others 16.8 per cent.