ICICI Direct has given Buy recommendation for Neogen Chemicals recommended buy rating on the stock with a target price of Rs 1515 in its research repor with a target price of Rs. 1515 in its research report issued on Sep 21, 2021

ICICI Direct’s research report on Neogen Chemicals

Commencing operations in 1991, Neogen Chemicals manufactures specialty organic bromine-based chemical compounds as well as specialty inorganic lithium-based chemicals compounds. • The company’s products find application in pharmaceutical intermediates, agrochemical intermediates, engineering fluids, polymers additives and water treatment chemicals to name a few • Neogen has two segments viz. (i) organic chemicals, (ii) inorganic chemicals of which organic chemical constitute ~80% of overall revenue while the rest comes from inorganic chemicals.

Outlook

We value Neogen Chemicals at 40x P/E FY24E EPS to arrive at a revised target price of Rs 1515/share (earlier Rs 1095/share).

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