We expect strong EBITDAand PAT CAGRs of 35/47% over FY22-24E. We initiate coverage on NCL with a BUY and target price of INR 1,220, (WACC 10%, terminal growth 5%). The stock is trading at 43.4/28.0 on FY23/24E EPS. Neogen Chemicals Ltd (NCL) is a leading manufacturer of bromine and lithium-based derivatives in India with technocrat promoters at the helm. We believe the improvement in the share of custom synthesis manufacturing (CSM) and advanced intermediates will result in strengthening of the balance sheet and manifest earnings visibility. The tripling of its organic chemicals manufacturing capacity will not only allow it to fulfil commitments of the two long-term contracts, but also bestow flexibility in selection of new molecules. Capacity expansion will accelerate the pace of growth, which was previously curtailed by limited infrastructure.