Small Cap Chemical Stock Spurts Over 6% Intraday, Nuvama Sees 24% Return, Buy

Small cap Chemical Sector stock, Neogen Chemicals Ltd gained 6.61% in trade on Monday soon after its board okayed acquisition of BuLi Chemicals. Meanwhile, brokerage firm, Nuvama has recommended investors to buy Neogen Chemicals with target price of Rs 1700 and potential return of 24%. Last trading price of Neogen Chemicals is Rs 1374.85 apiece on BSE. Check details below:

Neogen Chemicals Okays Acquisition of BuLi Chemicals: According to the BSE filing of the company, "Neogen Chemicals Limited and Livent Corporation today jointly entered into a definitive agreement for Neogen to acquire 100% stake in BuLi Chemicals India Pvt. Ltd (BuLi Chem) from Livent."

Neogen Chemicals Stock Performance & Return: Last trading price of Neogen Chemicals is Rs 1374.85 apiece with 52-week high at Rs 1792.00 and 52-week low at Rs 1127.70 apiece, respectively. The company has a market capitalisation of Rs 3,436.64 crore. The stock gave 17% return in just 1-month, 7% return in last 3-months, and declined 13% in last 1-year. It rallied over 192% in last 3-years.

Neogen Chemicals Valuation: According to Nuvama, "Neogen Chemicals (NEOGEN) reported an in line Q3FY23 performance. Revenue grew 40% YoY and 26% QoQ to INR186cr (est. INR181cr) aided by healthy growth in the organic and inorganic chemicals. We maintain 'BUY' with a revised TP of INR1,700. At our TP, the stock is trading at 34x average EPS for FY24E/FY25E. Any considerable delay in customer approvals can be a key risk to our investment thesis."

Neogen Chemicals About: Neogen Chemicals Ltd. is over 30-year-old company specializing in Bromine based compounds, Grignard Reagents and Inorganic Lithium Salts. Over the years, Neogen has developed several Bromine based intermediates and is a leading manufacturer of these products. Its specialty chemicals product offerings are used in pharmaceutical and agrochemical intermediates, engineering fluids, electronic chemicals, polymer additives, water treatment, construction, aroma chemicals, etc.

The stock has been picked from the brokerage report of Nuvama. 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.