NGL Fine Chem Faces Valuation Shift Amid Declining Profitability and Market Underperformance

Apr 22 2025 08:15 AM IST
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NGL Fine Chem, a microcap in the Pharmaceuticals & Drugs sector, has experienced a change in its valuation grade. Key financial metrics indicate a moderate valuation, but the company has faced significant profitability challenges, with a notable decline in profits and underperformance against market indices, raising concerns about its growth prospects.
NGL Fine Chem, a microcap player in the Pharmaceuticals & Drugs industry, has recently undergone an adjustment in its evaluation. This revision reflects a shift in the company's valuation grade, moving from a very attractive position to an attractive one.

Key financial metrics reveal a PE ratio of 19.97 and a Price to Book Value of 2.33, indicating a moderate valuation relative to its peers. The company’s EV to EBITDA stands at 14.66, while the EV to Sales ratio is 1.64. Despite these metrics, NGL Fine Chem has faced challenges, including a significant decline in profitability, with a reported PAT of Rs 1.28 crore, marking an 87.2% drop.

The company's operating profit has shown a modest annual growth rate of 9.24% over the past five years, which may raise concerns about its long-term growth prospects. Additionally, the stock has underperformed against broader market indices, generating a return of -58.54% over the past year.

Overall, the adjustment in evaluation reflects the complexities surrounding NGL Fine Chem's financial health and market positioning.

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