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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Neogen Chemicals Limited is an India-based company, which is engaged in the business of manufacturing of specialty chemicals. It is also engaged in manufacturing bromine compounds, lithium-based chemical compounds, advanced intermediates, and custom synthesis and contract…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A weak, stagnant business, priced for perfection — but flagged on governance.
Neogen Chemicals is scored on the general / industrial framework. It keeps a thin 3.3% of every rupee of sales as net profit. Cash conversion lags the reported profit (CFO/PAT -8.05×) — worth a closer look. Free cash flow is worth about -8.4% of its market value.
Over the last 3 years revenue compounded at 8%/yr and profit at -17%/yr. Book value itself has compounded 19%/yr — the hallmark of a genuine compounder. Return on equity is a weak 2.6%. In the latest quarter profit fell 52% versus the prior quarter.
At 234× earnings, the stock sits at the 100th percentile of its own 3.6-year range — the expensive end of where it has historically traded. Today's price already implies ~41%/yr earnings growth sustained for a decade — a demanding bar. The forensic screen raises a red flag: Only ₹-0.64 of cash per ₹1 profit over 4 years — earnings not converting to cash.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 189.74 | — | — |
| P/B | 4.86 | 2.66 | worse |
| EV/EBITDA | 46.68 | 9.95 | worse |
| ROE | 2.56 | — | — |
| ROCE | 4.63 | — | — |
| ROA | 1.01 | — | — |
| Quick Ratio | 0.69 | 2.26 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Pidilite Industries | 59.1 | 14.3 | 23.9% |
| SRF | 32.3 | 4.8 | 14.9% |
| Linde India | 118.3 | 13.3 | 11.3% |
Revenue has grown every year across all 4 financial years shown. 8% CAGR — growing but slowly.
Revenue is outpacing profit (8% vs -17%) — costs are rising faster than the top line.
Operating margin has compressed from 10% to 5% — costs or competition are eating into profitability. Margins have declined for 3 consecutive years — watch for a structural cost problem.
ROE at 4% — modest; the capital isn't working hard. Capital efficiency declining — ROE down 7pp.
EPS dropped in the latest year despite possible profit changes — dilution or a profit dip could be at play. -18% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
3 of 4 years had negative operating cash flow — profitability on paper may not translate to cash. Investing outflows exceed operating cash — the company relies on external funding to finance expansion.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue rose 18% sequentially — momentum is building. Run-rate stepping up — recent quarters average 18% above earlier ones.
Profit fell 52% QoQ — one-quarter drops can be noise, but a pattern matters.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters at 48.3% — dispersed ownership; institutional flows drive the stock. Promoters reduced 2.9pp over 4 quarters — watch whether this is planned divestment or pledge invocations. MF stake down 2.7pp — domestic funds are booking profits or rebalancing out.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.