Chemical Stock That Fell 10% In 12-Months, Nuvama Sees Shares Soaring, Buy

Brokerage firm Nuvama has recommended investors to buy small cap Chemicals sector stock, Neogen Chemicals Ltd as multiple levers are in place to push growth. Neogen Chemicals (NEOGEN) reported an in line Q3FY23 performance. If you buy Neogen Chemicals now, it can offer potential return of 31%. Check details below:

1. Neogen Chemicals Stock Performance, Return, & Financial Outlook

Stock Performance: Last trading price of Neogen Chemicals is Rs 1300.00 apiece with intraday gain of 0.32%. The stock's 52-week high is Rs 1792.00 apiece and 52-week low is Rs 1127.70 apiece, respectively. The company has a market capitalisation of Rs 3,242.11 crore.

Return: The stock rose 4% in last 1-month, fell 6% in last 3-months, and gave a return of 178% in last 3-years.

Financial Outlook: The company for the quarter ended December 31, 2022 declared a consolidated total income of Rs 187.65 crore, up 26.33% from last quarter total income of Rs 148.54 crore. Neogen declared net profit after tax at Rs 14.71 crore in latest quarter.

2. Neogen Chemicals Valuation

According to Nuvama, "We maintain 'BUY' with a revised TP of INR1,700. At our TP, the stock is trading at 34x average EPS for FY24E/FY25E. Any considerable delay in customer approvals can be a key risk to our investment thesis."

3. Neogen Chemicals About

Neogen Chemicals Ltd is more than 30-year old company. It has specialisation in Bromine based compounds, Grignard Reagents and Inorganic Lithium Salts. The small cap company was incorporated in 1989.

Disclaimer

The stock has been picked from the brokerage report of Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.