Neogen Chemicals Q4 Review – External Factors Have A Bigger Role To Play In Lithium Growth Story: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Neogen Chemicals Ltd.’s Q4 FY22 Ebitda came in ~6% above our estimate, mainly on account of higher-than-expected growth in the inorganic chemicals business amid seasonality and elevated lithium pricing.

The organic chemicals segment witnessed some moderation on a QoQ basis on account of change in the product mix and some operational challenges faced while developing some new molecules.

However, Neogen Chemicals continues to work on high-value orders in developing new molecules and customised orders in the bromine business.

The management sounded confident in terms of growth in advanced intermediates and the custom synthesis manufacturing business.

In the existing inorganic chemicals business, while the management is witnessing better traction from international clients, there is uncertainty in terms of lithium prices, which are up by ~2- 2.5 times from their peak.

Click on the attachment to read the full report:


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
honestcolumnist Governmental News Finance News

Source link

Back to top button