Shares of Neogen Chemicals Ltd and Balaji Amines Ltd experienced significant rallies in Wednesday's trading, with both companies seeing their stock prices climb by as much as 11%. This surge followed positive commentaries and strategic updates from analysts regarding their future prospects.
Neogen Chemicals Excluded from ASM Framework
Neogen Chemicals saw its stock jump by 10.88 percent, reaching Rs 1,752.60 per share. A key factor in this upward movement was its exclusion from the Additional Surveillance Measure (ASM) framework, as noted by SBICap Securities.
Arihant Capital Markets highlighted Neogen Chemicals' vision for FY27 as a "transformational year." This outlook is largely driven by the anticipated commissioning of its Pakhajan electrolyte facility and the expansion at its Dahej plant. These developments are expected to substantially boost the company's revenue from battery chemicals.
- Battery materials revenue projected to exceed Rs 300 crore in FY27, with a significant portion expected in the second half.
- The company maintains a consolidated revenue potential of Rs 3,700–4,200 crore by FY29.
- This growth is supported by robust domestic gigafactory opportunities and its partnership with Morita Chemical Industries for non-FEOC compliant electrolyte capabilities.
Balaji Amines Sees Raised Revenue Estimates
Balaji Amines, despite being included in the short-term ASM framework, climbed 7.44 percent to Rs 1,841.30 per share. Elara Securities has significantly raised its revenue estimates for Balaji Amines for FY27 and FY28.
Elara increased its FY27 revenue estimate by 17 percent to Rs 1,840 crore and its FY28 estimate by 30 percent to Rs 2,600 crore. This revision is based on improved visibility for several key projects:
- Di-methyl-ether (DME) commissioning.
- Acetonitrile (ACN) upgrade.
- N-methyl-morpholine (NMM) projects.
- Balaji Specialty’s (BSCL) ethylene-di-amine (EDA) and cyanide/Ethylene Diamine Tetra Acetic Acid (EDTA)-based expansion projects.
Elara also raised its FY27 and FY28 Ebitda estimates for Balaji Amines by 38-51 percent. This incorporates higher DME realization linked to commercial LPG substitution, an improved product mix, and operating leverage from new capacities. The firm adjusted its Ebitda margin estimate to 20.8 percent for FY27E and 22.1 percent for FY28E, and consequently raised its price target to Rs 1,696 from Rs 1,339. However, Elara downgraded Balaji Amines to "Reduce," citing that the current stock price appears to be pricing in execution ahead of delivery.