Rs 2/Share Dividend: Chemicals Stock Declares 18% Gain In Profit, Buy For TP Rs 1840

Kotak Institutional Equities has recommended traders to buy Neogen Chemicals share with target price of Rs 1840/share. Current market price of Neogen Chemicals Ltd share is Rs 1542.20 per share with intraday gain of 0.75%. Neogen Chemicals shares gave shareholders return of 29% in last 1-month and 11% in last 1-week. Neogen Chemicals declared Rs 2/share dividend on April 30, 2024. More details below:

Neogen Chemicals Declares Dividend: As per the BSE filing of the company dated April 30, 2024, "recommended a final dividend of Rs. 2.00 per Equity Share for the Financial Year 2023-24, subject to approval of shareholders at the ensuing Annual General Meeting of the Company."

Neogen Chemicals Q4 Results: The company declared a jump of 18% in its consolidated net profit for Q4 ended March 31, 2024 thus beating analysts estimates. The company announced its net profit soared to Rs 16.9 crore for the quarter ended March 31, 2024 as against the analysts' estimates of 8.48 crore, as per the exchange filing. However, revenue of Neogen Chemicals declined 2.1% to Rs 199.7 crore year-on-year (YoY). EBITDA of the company jumped 9.8% to Rs 35.8 crore for Q4.

Kotak Recommends Buy Call: According to Kotak Institutional Equities, "(The firm) is gearing up for a multifold scale-up in the coming years by virtue of being the first mover and arguably the most credible entrant in India's promising EV battery chemicals space. We estimate 34%/40% revenue/EPS CAGRs for Neogen over FY2023- 29, led by commencement of battery chemical revenues and supported by continued healthy growth in the base business of bromine/lithium derivatives."

The analyst said that balance sheet leverage is key worry due to the Neogen's long working capital cycle and ambitious growth plans. The management seeks to bring down the net working capital cycle to 120 days from 170-180 days, however development has been slow amid industry challenges.

Neogen Chemicals Share Performance: The 52-week high price is Rs 1851.05 per share (as on 05/10/2023) and 52-week low price is Rs 1148.80 per share (as on 27/03/2024), respectively. Neogen Chemicals has a market capitalisation of Rs 4,068.58 crore. Neogen Chemicals shares soared 11% in last 2-weeks, gave return of 5% YTD, fell 2% in last 1-year, and jumped 78% in last 3-years.

Neogen Chemicals About: Neogen Chemicals Ltd. is a over 30-year old company specialising in Bromine based compounds, Grignard Reagents and Inorganic Lithium Salts. It was founded by Haridas T. Kanani, a chemical engineer from Indian Institute of Technology (IIT), Mumbai.

Disclaimer:

The stock has been picked from the brokerage report of Kotak Institutional Equities. 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.