NGL Fine-Chem Ltd. (NGLFINE) AI Stock Analysis

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NGL Fine-Chem Ltd.

(NSE:NGLFINE)

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Rating:57Neutral

Price Target:INR 3,147.00▲(3.50% Upside)

Action:reiterated

Date:09/13/26

The score is primarily held back by weak cash-flow quality (persistently negative free cash flow and low cash conversion) and currently bearish technical signals (price below key moving averages with negative MACD). Offsetting these, the company shows strong 2026 revenue growth and improved profitability with manageable leverage, and the high dividend yield provides valuation support despite a relatively elevated P/E.

Positive Factors

Revenue Re-accelerationThe return to 22.6% revenue growth indicates improving demand and renewed commercial momentum after a stagnant period. For a specialty pharma-chemicals supplier, sustained growth can broaden customer activity, improve production utilization, and support stronger earnings over the next several quarters.

Negative Factors

Gross Margin CompressionThe substantial gross-margin decline signals weaker economics at the product or production level despite renewed revenue growth. Unless margins recover, incremental sales may contribute less to operating profit, limiting earnings scalability and making future profitability more sensitive to cost and mix changes.

NGL Fine-Chem Ltd. (NGLFINE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 18.79B
Dividend Yield: 0.06%
Average Volume (3M): 839
Price to Earnings (P/E): 29.4
Beta (1Y): 1.02
Revenue Growth: 40.66%
EPS Growth: 208.52%
Country: India
Employees: 502
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - General

NGL Fine-Chem Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Mumbai, India, and established in 1981, NGL Fine-Chem Limited operates as a worldwide producer and distributor of pharmaceutical ingredients and intermediates for both veterinary and human health sectors. The company's comprehensive...

How the Company Makes Money

NGL Fine-Chem Ltd. primarily makes money by selling manufactured chemical and pharmaceutical products to business customers (B2B). Key revenue streams generally include: (1) Sale of APIs: Revenue is generated from producing and supplying active pharm...

NGL Fine-Chem Ltd. Financial Statement Overview

Summary

Growth and profitability improved in 2026 (revenue +22.6%, net margin ~9.6%), and leverage remains manageable despite rising debt-to-equity (~0.33). However, gross margin compressed sharply (~35% in 2026 vs ~50% in 2024–2025) and cash quality is weak with negative free cash flow in most recent years and low cash conversion (~26% of net income in 2026).

Income Statement

71Positive

Balance Sheet

74Positive

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.76B	5.01B	3.68B	3.39B	2.78B	3.18B
Gross Profit	2.46B	1.76B	1.86B	1.70B	1.38B	1.66B
EBITDA	1.03B	874.18M	338.69M	678.69M	404.87M	788.78M
Net Income	638.21M	481.27M	211.24M	413.17M	204.96M	498.97M
Balance Sheet
Total Assets	6.28B	5.45B	4.33B	3.56B	2.87B	2.77B
Cash, Cash Equivalents and Short-Term Investments	445.08M	442.99M	655.28M	553.14M	525.02M	295.49M
Total Debt	1.27B	1.09B	731.53M	340.04M	324.99M	300.01M
Total Liabilities	2.65B	2.16B	1.51B	929.04M	645.30M	737.10M
Stockholders Equity	3.63B	3.29B	2.82B	2.63B	2.23B	2.03B
Cash Flow
Free Cash Flow	0	-503.10M	-949.49M	-80.59M	38.80M	-425.52M
Operating Cash Flow	0	395.40M	358.22M	204.65M	352.86M	138.25M
Investing Cash Flow	0	-712.79M	-345.53M	-268.17M	-270.20M	-142.03M
Financing Cash Flow	0	340.13M	-10.81M	-10.81M	-10.81M	-10.81M

NGL Fine-Chem Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price3040.55

Price Trends

50DMA2799.86Positive

100DMA2973.02Positive

200DMA2650.65Positive

Market Momentum

MACD41.03Negative

RSI62.37Neutral

STOCH86.17Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NGLFINE, the sentiment is Positive. The current price of 3040.55 is above the 20-day moving average (MA) of 2738.86, above the 50-day MA of 2799.86, and above the 200-day MA of 2650.65, indicating a bullish trend. The MACD of 41.03 indicates Negative momentum. The RSI at 62.37 is Neutral, neither overbought nor oversold. The STOCH value of 86.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NGLFINE.

NGL Fine-Chem Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NGLFINE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:MARKSANS	78Outperform	INR 144.33B	25.77	―	0.28%	24.20%	59.18%
IN:SMSPHARMA	74Outperform	INR 47.64B	40.13	―	0.08%	12.96%	32.16%
IN:SENORES	70Outperform	INR 54.10B	38.52	―	―	39.71%	53.21%
IN:KOPRAN	60Neutral	INR 13.97B	35.51	―	1.04%	34.11%	123.11%
IN:NGLFINE	57Neutral	INR 18.78B	29.44	―	0.06%	40.66%	208.52%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:GLAND	55Neutral	INR 550.26B	44.47	―	0.60%	21.90%	56.28%

* General Sector Average

Performance Comparison

IN:NGLFINE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NGLFINE	NGL Fine-Chem Ltd.	3040.55	1681.06	123.65%
IN:GLAND	Gland Pharma Ltd.	3334.70	1533.73	85.16%
IN:KOPRAN	Kopran Limited	289.00	151.78	110.61%
IN:MARKSANS	Marksans Pharma Limited	318.50	124.14	63.87%
IN:SMSPHARMA	SMS Pharmaceuticals Limited	508.70	219.70	76.02%
IN:SENORES	Senores Pharmaceuticals Ltd.	1174.70	384.95	48.74%

NGL Fine-Chem Ltd. Corporate Events

NGL Fine-Chem Files SEBI Dematerialisation Compliance Certificate for September Quarter

Oct 5, 2026

NGL Fine-Chem Ltd., a listed chemical and pharma intermediates company with shares traded on BSE and NSE, relies on Purva Sharegistry (India) Pvt. Ltd. as its registrar and share transfer agent to manage its equity securities in dematerialised form t...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 13, 2026

NGL Fine-Chem Ltd. AI Stock Analysis