Neogen Chemicals soars 13%, hits new all-time high amid heavy volumes

With today's rise, the stock has extended its rally to 33 percent in the past one week

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Shares of Neogen Chemicals rallied over 13 percent to hit an all-time high of Rs 2,140 per share on September 19 amid volume spurt. Around 1.1 million shares were exchanged on BSE and NSE in intra-day deals, exceeding 1-week average of 0.3 million equity shares.

With today's rise, the stock has extended its rally to 33 percent in the past one week, outperforming benchmark Nifty 50's 0.1 percent rise.

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Neogen Chemicals specialises in manufacturing eco-friendly specialty chemicals used across the pharmaceutical, engineering, and agrochemical industries. The company has built strong expertise in Bromine and Lithium compounds, and more recently, advanced intermediates for the pharmaceutical and pesticide sectors.

In its annual report, the management remained optimistic about the long-term growth of the chemicals sector, driven by the China+1 strategy, efforts to reduce chemical imports, robust R&D capabilities, and favorable government policies.

To address challenges in the agrochemical market, Neogen is exploring non-agrochemical opportunities until the global market recovers. The company remains confident of achieving Rs 900-1,000 crore in revenues by FY26, anticipating a recovery in the latter half of this fiscal year.

Government initiatives like ‘Make in India’ and the PLI Scheme are expected to further support Neogen’s growth, particularly in pharmaceutical intermediates and lithium-ion batteries for electric vehicles (EVs) and renewable energy storage.

Currently, 7 brokerages have coverage on Neogen Chemicals stock, with 5 recommending a 'strong buy' on the counter while 2 are suggested a 'hold' rating.

In the June ended quarter, Neogen Chemicals reported total revenue of Rs 169 crore, down from Rs 172 crore in the year-ago period. Net profit, meanwhile, increased to Rs 12 crore in Q1FY25 from Rs 11.4 crore in Q1FY23.

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