This small-cap speciality chemical company delivered over 125% returns in the last 2.5 years!

This small-cap speciality chemical company delivered over 125% returns in the last 2.5 years!

by 5paisa Research Team Last Updated: Sep 07, 2023 - 05:09 pm 3.1k Views
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An investment of Rs 1 lakh in the shares of this company 2.5 years ago would have turned to Rs 2.29 lakh today.

Neogen Chemicals Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two and a half years. During this period, the company’s share price jumped from Rs 533.35 on 27 July 2020 to Rs 1,223 on 20 January 2023, an increase of 129% in the 2.5-year holding period.

An investment of Rs 1 lakh in the shares of this company 2.5 years ago would have turned to Rs 2.29 lakh today.

Neogen Chemicals specializes in Bromine-based compounds, Grignard Reagents and Inorganic Lithium Salts. Neogen has developed several Bromine-based intermediates and is a leading manufacturer of these products to pharmaceutical agrochemical and other speciality chemical companies in India Europe and Japan with leading Innovator and Generic companies as its customers. Apart from Bromination and Grignard chemistry, Neogen has also developed competencies in other related chemistries like Alkylation, Acylation, Friedel Craft, Couplings Chlorination etc.

In the recent quarter Q2FY23, on a consolidated basis, the company’s topline increased by 30.87% YoY to Rs 148 crore. However, the bottom line decreased by 11.6% YoY to Rs 9.8 crore.

The company is currently trading at a TTM PE of 64.80x, as against the industry PE of 27.12x. In FY22, the company delivered an ROE & ROCE of 14.33% and 14.34%, respectively. The company is a constituent of Group A stocks and commands a market capitalisation of Rs 3,070.40 crore.

Today, the scrip of Neogen Chemicals Ltd opened at Rs 1237.80, which was also the day’s high. Further, the scrip touched an intra-day low of Rs 1227.25. So far 142 shares have been traded on the bourses.

At 12.09 pm, the shares of Neogen Chemicals Ltd were trading at Rs 1,230.40, an increase of 0.61% from the previous closing price of Rs 1,223 on BSE. The stock has a 52-week high & low of Rs 1,795 and Rs 1,201.25 respectively on BSE.

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