Neogen: Kotak Institutional recommends buying the stock, says firm has first-mover advantage in EV battery chemicals
Neogen Chemicals, the fast-growing speciality chemical company, is gearing up for a multifold scale-up in the coming years by virtue of being the first mover and arguably the most credible entrant in India’s promising EV battery chemicals space, said domestic brokerage firm Kotak Institutional Equities. In its recent report, the brokerage initiated coverage on Neogen stock with a 'buy' rating and a target price of ₹1,840 apiece.
The brokerage views Neogen as one of the most credible growth stories in the Indian speciality chemicals industry, citing factors such as the company's experienced and reputable promoters, including PI's ex-ED Anurag Surana, its history of rapid growth driven by innovation and enterprise, and its strategic partnerships with industry leaders like Mitsubishi and global customers. Also Read: Hyundai and Kia's India-made EVs set to debut in 2025: Report The brokerage said the company is on track to become the first mover in the battery chemicals segment in India owing to the extensive work it has done in this space over the past few years—further validated by the technology partnership it has managed to strike with MUIS (Japan).
Neogen is targeting an over 30% market share within battery electrolytes in India by 2030—a large opportunity. Separately, in its base business, the company continues to invest in new product development (both organically and inorganically) and is seeing traction in the CSM business.
The company forecasts revenues of ₹9.0–10.5 billion from its core business by FY2026, and an additional ₹25–29.5 billion from the battery chemicals segment by FY2028–29. Brokerage estimates align more closely with the lower end of the guidance range.
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