Recent Price Movement and Market Context
On 5 December 2025, Neogen Chemicals recorded its lowest price in the past year at Rs.1055.75. This level represents a substantial drop from its 52-week high of Rs.2414.90, indicating a near 56% reduction in value over the period. The stock has been on a downward trajectory for four consecutive trading sessions, accumulating a loss of 6.43% during this span.
In comparison, the broader Sensex index demonstrated resilience, recovering from an initial decline of 139.84 points to close 351.88 points higher at 85,477.36, a gain of 0.25%. The Sensex remains close to its 52-week high of 86,159.02, trading just 0.8% below that peak. Mega-cap stocks led the market rally, supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, signalling positive momentum for the benchmark.
Neogen Chemicals, however, diverged from this trend, underperforming its sector by 0.99% on the day. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing weakness in its price action.
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Financial Performance and Profitability Indicators
Neogen Chemicals’ financial data over recent quarters highlights several areas of concern. The company reported negative results for two consecutive quarters, with profit before tax excluding other income (PBT LESS OI) at Rs.3.26 crores, reflecting a decline of 78.0% compared to the previous four-quarter average. Similarly, profit after tax (PAT) for the quarter stood at Rs.3.37 crores, down 68.5% relative to the same benchmark.
The return on capital employed (ROCE) for the half-year period was recorded at 5.72%, one of the lowest levels observed, while the average return on equity (ROE) over time is 9.65%, indicating modest profitability relative to shareholders’ funds. Operating profit has grown at an annual rate of 14.16% over the last five years, a pace that may be considered subdued within the specialty chemicals industry.
Debt metrics also present challenges. The company’s debt to EBITDA ratio stands at 4.01 times, signalling a relatively high debt burden in relation to earnings before interest, tax, depreciation, and amortisation. This ratio suggests limited capacity to service debt obligations comfortably.
Valuation and Comparative Analysis
Neogen Chemicals is trading at a discount compared to its peers’ average historical valuations, with an enterprise value to capital employed ratio of 2.1. Despite this, the stock’s return over the past year has been negative at -49.31%, while profits have declined by 12.7% during the same period. The stock has also underperformed the BSE500 index over one year, three years, and the last three months, reflecting below-par performance both in the near and longer term.
Institutional investors hold a significant stake in the company, accounting for 30.38% of shareholding. These investors typically possess greater resources and analytical capabilities to assess company fundamentals.
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Sector and Market Position
Operating within the specialty chemicals sector, Neogen Chemicals faces a competitive environment where growth and profitability metrics are critical. The company’s market capitalisation grade is rated at 3, indicating a mid-sized presence within its industry. Despite the broader market’s positive momentum, Neogen Chemicals’ stock price has not aligned with sector or index gains, reflecting specific company-level factors influencing investor sentiment.
The stock’s current trading below all major moving averages suggests a lack of upward momentum in the short to medium term. This technical positioning often reflects investor caution and may influence trading behaviour.
Summary of Key Metrics
To summarise, Neogen Chemicals’ stock has reached Rs.1055.75, its lowest level in 52 weeks, after a series of declines over recent sessions. The company’s financial indicators reveal subdued profitability, elevated debt levels, and recent quarterly results that have not met prior averages. While the broader market and sector indices have shown resilience and gains, Neogen Chemicals has lagged behind, with a one-year return of -49.31% compared to the Sensex’s 4.45% rise.
These factors collectively contribute to the stock’s current valuation and price behaviour, positioning it distinctly within the specialty chemicals industry landscape.
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