Neogen Chemicals, Balaji Amines shares soar up to 11%; here's why

Shares of Neogen Chemicals Ltd and Balaji Amines Ltd soared up to 11 per cent in Wednesday's trade amid positive commentaries around the two companies. Neogen Chemicals jumped 10.88 per cent to Rs 1,752.60 apiece. As per SBICap Securities, the stock has been excluded from the ASM framework. Balaji Amines, which was included in the short-term ASM framework, climbed 7.44 per cent to Rs 1,841.30. 

Neogen Chemicals
Arihant Capital Markets in a note on Tuesday said Neogen Chemicals has reiterated FY27 as a transformational year with commissioning of the Pakhajan electrolyte facility and Dahej expansion expected to materially scale battery chemicals revenue. 

The brokerae said Neogen's battery materials revenue is expected to exceed Rs 300 crore in FY27, largely weighted toward H2FY27. "The company maintained FY29 consolidated revenue potential of Rs 3,700–4,200 crore, supported by strong domestic gigafactory opportunities and non-FEOC compliant electrolyte capabilities through its partnership with Morita Chemical Industries," Arihant said.

Balaji Amines
In the case of Balaji Amines, Elara Securities has raised FY27 and FY28E revenue estimates by 17 per cent and 30 per cent to Rs 1,840 crore and Rs 2,600 crore, driven by improved visibility on di-methyl-ether (DME) commissioning, acetonitrile (ACN) upgrade, n-methyl-morpholine (NMM), and Balaji Specialty’s (BSCL) ethylene-di-amine (EDA)- and cyanide/Ethylene Diamine Tetra Acetic Acid (EDTA)-based expansion projects. 

Elara raised its FY27 and FY28 Ebitda estimates by 38-51 epr cent for Balaji Amines, as it factored in higher DME realization linked to commercial LPG substitution, improved product mix, and operating leverage from new capacities. 

"We raise Ebitda margin estimate by 316bps/310bps to 20.8 per cent/22.1 per cent for FY27E/28E. So, we raise our TP to Rs 1,696 from Rs 1,339. However, we downgrade BLA to Reduce, as the stock price seems to be pricing in execution ahead of delivery," Elara said.