Neuland Laboratories Ltd logo

Neuland Laboratories Ltd

NEULANDLAB NSE

Neuland Laboratories is engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets.[1]

AI Verdict: BUY Confidence: 7%

Neuland Laboratories delivers exceptional profit growth of 75% TTM with strong 3-year ROE of 21%, supported by unanimous analyst buy ratings. However, the stock trades at a demanding 60.7x PE and 11.9x book value, warranting caution on entry timing.

Key Fundamentals

SmallcapPharmaceuticalsHealthcare
Market Cap
₹23,069 Cr
Volatility
Moderate
P/E Ratio
63.31
EBITDA
₹575 Cr
Return on Equity
23.39%
Debt to Equity
0.09
Book Value
₹1,460.31
EPS
₹249.83
52W High
₹19,747
52W Low
₹11,500

Technical Indicators

Key Insights

Strengths

2
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 38.7% CAGR over last 5 years

Weaknesses

2
  • Stock is trading at 12.4 times its book value
  • Promoter holding has decreased over last 3 years: -3.50%

Growth Rate

Revenue Growth
35.11% ↘
Net Income Growth
38.42% ↘
Cash Flow Change
21.52% ↗
ROE
-27.06% ↘
ROCE
-30.03% ↘
EBITDA Margin (Avg.)
21.86% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk high

Neuland Laboratories delivers exceptional profit growth of 75% TTM with strong 3-year ROE of 21%, supported by unanimous analyst buy ratings. However, the stock trades at a demanding 60.7x PE and 11.9x book value, warranting caution on entry timing.

Bull Case 8
  • Compounded profit growth of 75% TTM significantly outpaces revenue growth of 37% TTM, indicating strong margin expansion
  • All 4 analysts covering the stock have a Buy rating, representing 100% buy consensus with zero holds or sells
  • 3-year ROE of 21% demonstrates consistent high-quality capital allocation and strong return generation
  • Stock CAGR of 84% over 3 years reflects sustained re-rating driven by improving fundamentals
  • Compounded sales growth of 19% over 3 years and 17% over 5 years shows durable revenue momentum in CDMO/API space
  • 5-year compounded profit CAGR of 39% far exceeds the 5-year sales CAGR of 17%, showing significant operating leverage
  • Company is expected to deliver a good upcoming quarter, suggesting near-term earnings catalyst remains intact
  • 10-year profit CAGR of 30% demonstrates long-term compounding ability across market cycles
Bear Case 8
  • PE ratio of 60.7x is extremely elevated for a pharmaceutical company, leaving minimal margin of safety on any earnings miss
  • Price-to-book of 11.9x is very high, implying significant future growth is already priced into the stock
  • Promoter holding has decreased by 3.50% over the last 3 years, signaling potential insider concerns about valuation
  • Dividend yield of just 0.2% offers negligible income support, making returns entirely dependent on capital appreciation
  • Market cap of Rs 22,247 crore on a mid-cap pharma company implies the stock must sustain 30%+ earnings growth for years to justify current valuation
  • 1-year stock CAGR of 42% after a 3-year CAGR of 84% suggests potential mean reversion risk if growth moderates
  • 5-year ROE of 18% versus last year ROE of 21% shows improvement is relatively recent and yet to prove sustainability over a full cycle
  • 10-year sales CAGR of 15% versus current TTM growth of 37% highlights that current growth rate is well above historical trend and may normalize

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 2
  • Goldman Sachs non-deal roadshow Jun 5

    Management scheduled a non-deal roadshow with Goldman Sachs on June 11, 2026 in Hyderabad, signaling institutional interest from a top-tier global bank.

  • Active global investor outreach Jun 3

    Management attending Nuvama India Conference 2026 (UK Edition) in London on June 8-9 and BOFA Healthcare Tour on June 5 in Hyderabad, demonstrating strong engagement with international and domestic institutional investors.

Neutral 1
  • Final dividend record date set Jun 16

    Board fixed July 24, 2026 as record date for FY26 final dividend. 42nd AGM scheduled for August 4, 2026 via video conferencing.

TL;DR: Neuland Laboratories shows no negative catalysts in recent news flow. The company is actively engaging top-tier institutional investors including Goldman Sachs, Bank of America, and Nuvama across domestic and international venues, suggesting growing institutional interest in the healthcare/CDMO name. Routine AGM and dividend announcements confirm steady corporate governance. The trend appears stable with potential for increased institutional ownership given the concentrated investor outreach.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
407
363
418
393
385
440
311
398
328
293
514
440
776
Expenses
287
266
280
272
278
316
249
311
277
258
359
363
469
Operating Profit
120
97
137
121
107
123
62
87
51
34
156
77
307
OPM %
29%
27%
33%
31%
28%
28%
20%
22%
16%
12%
30%
18%
40%
Other Income
8
2
3
2
5
25
4
60
7
8
2
8
12
Interest
4
2
4
4
4
3
1
2
2
5
5
7
7
Depreciation
13
14
15
15
16
16
16
16
17
20
23
24
25
PBT
110
83
122
104
92
130
49
128
39
18
129
54
287
Tax %
23%
26%
27%
22%
27%
25%
34%
20%
29%
21%
25%
26%
26%
Net Profit
85
62
89
81
68
98
33
102
28
14
97
41
213
EPS in Rs
65.89
48.23
69.56
63.44
52.66
76.28
25.6
79.18
21.68
10.83
75.49
31.62
166
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
469
510
579
527
667
763
937
951
1,191
1,559
1,477
2,023
Expenses
402
430
472
477
608
661
790
807
918
1,096
1,146
1,448
Operating Profit
67
80
106
51
58
102
147
144
273
463
331
574
OPM %
14%
16%
18%
10%
9%
13%
16%
15%
23%
30%
22%
28%
Other Income
0
2
1
4
3
4
16
0
9
12
90
30
Interest
27
24
21
19
16
22
18
14
13
14
8
24
Depreciation
15
16
19
22
26
31
40
49
53
60
66
92
PBT
25
42
67
14
20
53
105
82
216
401
346
489
Tax %
36%
36%
30%
13%
19%
69%
23%
22%
24%
25%
25%
26%
Net Profit
16
27
47
12
16
16
81
64
164
300
260
364
EPS in Rs
17.96
30.75
52.74
13.57
12.81
12.63
62.85
49.74
127
234
203
284
Div. Payout %
8%
7%
0%
0%
0%
16%
8%
10%
8%
6%
6%
12%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
9
9
9
9
13
13
13
13
13
13
13
13
Reserves
152
178
537
549
686
697
774
828
981
1,270
1,512
1,862
Borrowings
188
182
192
319
231
264
182
241
128
95
157
301
Other Liabilities
162
155
148
194
200
257
356
302
457
454
498
754
Total Liabilities
512
524
886
1,071
1,130
1,231
1,325
1,383
1,580
1,833
2,180
2,930
Fixed Assets
123
139
466
475
542
653
716
767
758
824
955
1,178
CWIP
41
40
20
126
104
24
17
20
41
46
48
210
Investments
7
7
8
8
8
8
7
4
1
1
109
2
Other Assets
340
337
393
463
476
547
585
592
781
962
1,068
1,541
Total Assets
512
524
886
1,071
1,130
1,231
1,325
1,383
1,580
1,833
2,180
2,930
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
13
45
39
11
70
57
189
60
237
261
317
347
Investing
-14
-20
-42
-116
-77
-49
-84
-95
-61
-150
-298
-424
Financing
1
-24
0
105
12
-5
-114
38
-136
-69
25
21
Net Cash Flow
0
1
-4
0
5
3
-9
3
40
42
44
-56
Free Cash Flow
-1
26
-2
-121
7
9
84
-37
173
119
112
-50
CFO/OP
33
70
52
28
128
61
132
56
103
81
119
78
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
100
85
114
134
90
91
85
90
111
87
78
98
Inventory Days
170
182
186
266
191
209
205
227
211
220
238
247
Days Payable
167
121
118
189
118
110
126
100
129
121
156
130
Cash Conversion Cycle
103
147
182
211
162
190
164
216
193
187
160
214
Working Capital Days
11
26
44
38
138
137
60
74
81
88
76
75
ROCE %
16%
18%
16%
4%
4%
8%
11%
10%
21%
33%
19%
27%

Shareholding Pattern

As of Mar 2026
Promoters 32.63%
Public 23.84%
FIIs 20.46%
DIIs 15.84%
Others 7.22%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
36.22%
36.22%
36.22%
36.22%
36.22%
36.22%
36.22%
36.14%
36.14%
36.03%
35.97%
32.80%
32.74%
32.72%
32.64%
32.68%
32.68%
32.68%
32.64%
32.63%
32.63%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
21.57%
22.69%
24.44%
25.72%
26.46%
23.86%
22.11%
21.69%
20.60%
20.90%
20.46%
DIIs
0.87%
0.04%
0.80%
0.80%
0.80%
0.80%
6.58%
6.55%
7.10%
6.76%
6.99%
6.03%
6.54%
6.39%
6.38%
9.08%
10.97%
11.57%
13.54%
14.71%
15.84%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.44%
0.46%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
0.00%
0.00%
Public
34.06%
36.62%
33.19%
32.84%
32.43%
33.25%
31.03%
30.09%
29.86%
29.01%
27.86%
29.51%
27.97%
27.05%
26.50%
26.05%
25.86%
25.55%
24.72%
24.31%
23.84%
Others
28.85%
27.12%
29.80%
30.15%
30.56%
29.74%
25.73%
26.76%
26.51%
27.80%
7.21%
8.57%
7.91%
7.71%
7.61%
7.93%
7.99%
8.12%
8.09%
7.45%
7.22%
No. of Shareholders
0
22,412
34,978
34,332
32,426
32,257
31,976
30,600
26,948
25,223
26,824
27,723
28,616
29,077
34,567
39,315
39,333
42,419
44,393
46,187
46,304

Documents

Frequently Asked Questions about Neuland Laboratories Ltd

What does Neuland Laboratories Ltd do?
Neuland Laboratories is engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets.[1]
Where is Neuland Laboratories Ltd (NEULANDLAB) listed?
Neuland Laboratories Ltd is listed on the Indian stock exchanges. It is listed on NSE: NEULANDLAB and BSE: 524558. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Neuland Laboratories Ltd belong to?
Neuland Laboratories Ltd operates in the Healthcare sector within the Pharmaceuticals & Biotechnology industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Neuland Laboratories Ltd?
Neuland Laboratories Ltd has a market capitalisation of approximately ₹23069.42 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Neuland Laboratories Ltd?
The Price-to-Earnings (PE) ratio of Neuland Laboratories Ltd is 63.31. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Neuland Laboratories Ltd?
Over the past 52 weeks, Neuland Laboratories Ltd has traded between a low of ₹11,500 and a high of ₹19,747. This range helps investors understand the stock's price volatility and recent trading levels.
Does Neuland Laboratories Ltd pay dividends?
Yes, Neuland Laboratories Ltd has a dividend yield of 0.19%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Neuland Laboratories Ltd?
Neuland Laboratories Ltd has a Return on Equity (ROE) of 23.39%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Neuland Laboratories Ltd on Tapetide?
On Tapetide, you can view Neuland Laboratories Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Neuland Laboratories is engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets.[1]

Website neulandlabs.com
CEO Dr. Davuluri Rama Mohan Rao
Employees 1,794
Listed 2008-10-13
Face Value ₹ 10
Issued Size 1,28,29,889

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