ScoreWhy is Neogen Chemicals Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.01 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.01 times
- The company has been able to generate a Return on Equity (avg) of 9.65% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 14.16% of over the last 5 years
3
The company has declared negative results for the last 2 consecutive quarters
- PAT(Q) At Rs 3.37 cr has Fallen at -68.5% (vs previous 4Q average)
- ROCE(HY) Lowest at 5.72%
- INTEREST(Q) At Rs 19.48 cr has Grown at 53.75%
4
With ROCE of 5.9, it has a Expensive valuation with a 2.2 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -50.35%, its profits have fallen by -12.7%
5
Below par performance in long term as well as near term
- Along with generating -50.35% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.87%
EBIT Growth (5y)
14.16%
EBIT to Interest (avg)
2.90
Debt to EBITDA (avg)
4.02
Net Debt to Equity (avg)
1.23
Sales to Capital Employed (avg)
0.71
Tax Ratio
32.11%
Dividend Payout Ratio
14.80%
Pledged Shares
0
Institutional Holding
26.56%
ROCE (avg)
11.25%
ROE (avg)
9.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
94
Industry P/E
39
Price to Book Value
4.12
EV to EBIT
40.53
EV to EBITDA
32.29
EV to Capital Employed
2.40
EV to Sales
5.35
PEG Ratio
NA
Dividend Yield
0.08%
ROCE (Latest)
5.93%
ROE (Latest)
4.41%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
NET SALES(Q)
Highest at Rs 208.66 cr
-28What is not working for the Company
PAT(Q)
At Rs 3.37 cr has Fallen at -68.5% (vs previous 4Q average
ROCE(HY)
Lowest at 5.72%
INTEREST(Q)
At Rs 19.48 cr has Grown at 53.75%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 1.54 times
DEBT-EQUITY RATIO(HY)
Highest at 1.42 times
PBDIT(Q)
Lowest at Rs 29.96 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 14.36%
PBT LESS OI(Q)
Lowest at Rs 3.26 cr.
NON-OPERATING INCOME(Q)
is 36.70 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Neogen Chemicals
Net Sales - Quarterly
Highest at Rs 208.66 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Neogen Chemicals
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.26 cr has Fallen at -78.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 14.79 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.37 cr has Fallen at -68.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 10.72 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 19.48 cr has Grown at 53.75%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 1.54 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 19.48 cr
in the last five quarters and Increased by 53.75 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 29.96 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 14.36%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 3.26 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 36.70 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debt-Equity Ratio - Half Yearly
Highest at 1.42 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 1.89 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
