This speciality chemical stock is trending on October 17

The company exports to 29 countries.

On October 17, the market is trading in the red. At 12 pm, the S&P BSE Sensex is trading at 58106, up 0.32%, while NIFTY50 is trading at 17248, up 0.36%. About sectoral performance, Financials are outperforming, while Metals and Realty are among the top losers. Talking stock-specific action, Neogen Chemicals Ltd is among the top gainers.

The shares of Neogen Chemicals Ltd surged 1.77% and are trading at Rs 1512.35, as of 12 pm. The stock opened at Rs 1510 and made an intraday high and low of Rs 1580.8 and Rs 1492.3, respectively.

Neogen Chemicals Ltd is involved in the business of manufacturing bromine and lithium-based organic and organo-metallic compounds, used in the pharmaceutical, agricultural chemicals, and engineering industries.

Sun Pharma, Divis Laboratories Ltd, Aurobindo, Piramal, Thermax, and Voltas are among the company’s clientele. Company exports to 29 countries. While America, Europe, Japan, and the Middle East are the key export markets.

The company recorded 5-year revenue and 5-year net profit CAGR at 34% and 41%, respectively. As per FY22, the company has ROE and ROCE of 14.2% and 14.4%, respectively.

For Q1FY23, the company reported a revenue of Rs 147.9 crore, a 75% YoY growth. Revenue growth was driven by incremental benefits achieved from capacity expansion. The Q1FY23 EBITDA improved YoY by 58% and stood at Rs 24.7 crore. Improvement in the EBITDA was supported by operating leverage. For the same quarter, the net profit increased by 51% and stood at Rs 11.1 crore.

According to Q1FY23, 56% of the company’s revenue comes from the domestic market, while the rest 44% from export markets. For Q1FY23, about Rs 90 crore came from organic chemicals, while Rs 58 crore came from inorganic chemicals.

The company has a market capitalisation of Rs 3877 crore and is trading at a PE multiple of 76.47x. The stock has a 52-week high and low of Rs 1933.7 and Rs 1131.85, respectively.