In the world of pharmaceuticals, where the making of medicines is a big deal, predicting what might happen next can be like solving a puzzle. Neuland Laboratories is one of the big players in this field, and everyone’s curious about what’s next.
Our mission here is to figure out if Neuland Laboratories’ stock price might reach ₹5,000 or not. It’s a big question, and we’ll dig into the clues in the business world to try and find the answer.
About Neuland Laboratories
Neuland Laboratories is a renowned pharmaceutical company engaged in the manufacturing and global distribution of bulk drugs.
Established in 1984, Neuland Laboratories Limited is a publicly listed company headquartered in Hyderabad, India. It holds a prominent position as a manufacturer of active pharmaceutical ingredients (APIs) and provides comprehensive solutions for the pharmaceutical industry’s chemistry requirements.
Neuland does a bit of everything in the pharmaceutical world. They sell their stuff in India and to other countries too. They have different parts of their business, like Prime APIs, which are important ingredients for medicines, and Specialty APIs that are a bit unique. These special molecules, like Levetiracetam and Mirtazapine, make them a lot of money.
They sell their stuff to more than 80 countries, with most of it going to the United States and Europe. These two places make up most of their sales.
Neuland Laboratories operates three manufacturing facilities in Hyderabad with a total capacity of around 900 KL p.a. Looking ahead, the company plans to leverage its existing infrastructure synergies for growth, particularly in its CMS and Generic Drug Substance (GDS) businesses, with a focus on improving profitability through Unit-III utilization.
It is pretty high-tech too. They have three fancy factories and do a lot of research to stay ahead in the pharmaceutical world. They also have big plans to keep growing and making more money, especially by using their factories better.
Q1 Fy2024 Key Points And Summary:
- Total Income for Q1FY24 reached Rs. 365.0 crore, reflecting a remarkable increase of 64.7% compared to the previous year. This growth was primarily driven by the Specialty and CMS segments.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1FY24 stood at Rs. 99.3 crore, showing a substantial YoY increase of 242.5%.
- The EBITDA Margin for Q1FY24 was 27.2%, marking a significant improvement of 1410 basis points (bps) compared to the previous year. This improvement was attributed to a better business mix and operational leverage.
- PAT (Profit After Tax) for Q1FY24 reached Rs. 62.2 crore, indicating an impressive YoY growth of 532.3%.
- Net Debt as of the end of Q1FY24 was recorded at Rs. 24.4 crore, a notable reduction from Rs. 160.0 crore at the end of Q1FY23 and Rs. 63.0 crore at the end of Q4FY23.
- There has been a consistent shift from low-margin Prime segments to high-margin Specialty and CMS segments, enhancing overall profitability.
The yearly analysis reveals:
- Promoters: Promoters have maintained a consistent holding of around 36% over the years.
- FIIs: FIIs showed a significant increase from 7.45% in March 2017 to 27.36% in March 2019 but decreased thereafter.
- DIIs: DIIs have been relatively stable, with a slight increase over the years.
- Government: Government holding emerged only in March 2023, at 0.40%.
- Public: Public shareholding reached its peak in March 2021 at 41.27% but has decreased since then.
Overall, this shareholding pattern showcases a mix of stability, external investor interest, and changing sentiment among the company’s stakeholders.
Recommended by Financesrule
| When | Maximum Price | Minimum Price |
| August 2023 | ₹4,135.32 | ₹3,504.51 |
| September 2023 | ₹4,230.43 | ₹3,845.85 |
| October 2023 | ₹4,147.48 | ₹3,770.44 |
| November 2023 | ₹4,066.16 | ₹3,696.51 |
| December 2023 | ₹4,200.34 | ₹3,818.49 |
Looking ahead, the price trends in 2023 showed fluctuations. In September, the maximum price reached ₹4,230.43, while November saw a decrease to ₹4,066.16. On the other hand, the minimum price ranged from ₹3,504.51 in August to ₹3,818.49 in December. These fluctuations hint at potential market volatility in the future, making it crucial for investors to stay informed about changing market dynamics, economic events, and industry trends when making future investment decisions.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹4,286.06 | ₹3,727.01 |
| February 2024 | ₹4,373.53 | ₹3,803.07 |
| March 2024 | ₹4,462.79 | ₹3,880.69 |
| April 2024 | ₹4,332.81 | ₹3,767.66 |
| May 2024 | ₹4,268.77 | ₹3,711.98 |
| June 2024 | ₹4,422.45 | ₹3,845.61 |
| July 2024 | ₹4,378.23 | ₹3,807.15 |
| August 2024 | ₹4,553.36 | ₹3,959.44 |
| September 2024 | ₹4,735.49 | ₹4,117.82 |
| October 2024 | ₹4,642.64 | ₹4,037.08 |
| November 2024 | ₹4,781.92 | ₹4,158.19 |
| December 2024 | ₹4,901.46 | ₹4,262.14 |
Looking ahead to 2024, it seems like things are going to get pretty interesting for this asset. In January, the prices started at ₹4,286.06 at the highest point and ₹3,727.01 at the lowest.
But as the months rolled on, the prices kept going up. Come December, the maximum price had climbed to ₹4,901.46, and the minimum wasn’t far behind at ₹4,262.14.
These steady increases are a positive sign and hint at more potential growth and stability in the future. So, if you’re an investor, it’s a good idea to keep a close eye on these trends. They could mean some exciting opportunities in the market for this asset in the months ahead.
| when | Maximum Price | Minimum Price |
| January 2025 | ₹4,999.49 | ₹3,845.76 |
| February 2025 | ₹5,127.69 | ₹3,944.37 |
| March 2025 | ₹5,327.66 | ₹4,098.20 |
| April 2025 | ₹5,223.20 | ₹4,017.85 |
| May 2025 | ₹5,071.07 | ₹3,900.82 |
| June 2025 | ₹5,299.27 | ₹4,076.36 |
| July 2025 | ₹5,195.36 | ₹3,996.43 |
| August 2025 | ₹5,356.04 | ₹4,120.03 |
| September 2025 | ₹5,543.50 | ₹4,264.23 |
| October 2025 | ₹5,687.63 | ₹4,375.10 |
| November 2025 | ₹5,829.82 | ₹4,484.48 |
| December 2025 | ₹5,975.57 | ₹4,596.59 |
Let’s start with January, where prices were at their highest at ₹4,999.49 and their lowest at ₹3,845.76. But here’s the interesting part – prices have been climbing up steadily since then.
By the time we hit December, the maximum price had gone up to ₹5,975.57, and even the lowest price was sitting at ₹4,596.59. These consistent increases tell us that there’s a good chance this asset could keep growing and staying stable in the future.
So, if you’re an investor, it might be a smart move to keep a close eye on these trends. They could be hinting at some pretty great opportunities in the market for this asset in the months to come.
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹6,274.35 | ₹4,392.04 |
| 2027 | ₹6,901.78 | ₹4,831.25 |
| 2028 | ₹9,662.50 | ₹4,831.25 |
| 2029 | ₹8,365.80 | ₹4,182.90 |
| 2030 | ₹10,875.54 | ₹7,612.88 |
In 2026, the maximum price reached ₹6,274.35, with a minimum of ₹4,392.04. This upward momentum continued into 2027, with a maximum price of ₹6,901.78 and a minimum of ₹4,831.25.
The year 2028 saw a substantial increase in both maximum and minimum prices, with the maximum reaching ₹9,662.50 and the minimum remaining at ₹4,831.25.
Looking further into the future, in 2030, the maximum price surged to ₹10,875.54, while the minimum remained relatively high at ₹7,612.88. These trends suggest a strong and positive outlook for the asset’s value, making it an area of potential interest for investors.
Neuland Laboratories Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (Crore Rs) |
667 | 763 | 937 | 951 | 1,191 |
| Expenses + (Crore Rs) |
608 | 661 | 790 | 807 | 918 |
| Operating Profit (Crore Rs) |
58 | 102 | 147 | 144 | 273 |
| OPM % | 9% | 13% | 16% | 15% | 23% |
| Other Income +(Crore Rs) | 3 | 4 | 16 | 0 | 9 |
| Interest (Crore Rs) |
16 | 22 | 18 | 14 | 13 |
| Depreciation (Crore Rs) |
26 | 31 | 40 | 49 | 53 |
| Profit before tax (Crore Rs) | 20 | 53 | 105 | 82 | 216 |
| Tax % | 19% | 69% | 23% | 22% | 24% |
| Net Profit + (Crore Rs) |
16 | 16 | 81 | 64 | 164 |
| EPS in Rs (Crore Rs) |
12.81 | 12.63 | 62.85 | 49.74 | 127.45 |
| Dividend Payout % | 0% | 16% | 8% | 10% | 8% |
- Sales: The company’s sales figures have demonstrated consistent growth, increasing from ₹667 million in March 2019 to ₹1,191 million in March 2023. This indicates a positive revenue trend, reflecting increasing market demand and business expansion.
- Expenses: Operating expenses have grown in tandem with sales, reflecting the company’s increased scale of operations. However, there is a need for cost management to ensure that expenses remain proportionate to revenue growth.|
- Operating Profit Margin (OPM): The OPM percentage has steadily improved from 9% in March 2019 to an impressive 23% in March 2023. This signifies the company’s ability to manage costs efficiently and generate higher profits from its operations.
- Net Profit and Earnings per Share (EPS): Net profit has consistently increased, with EPS rising from ₹12.81 in March 2019 to ₹127.45 in March 2023. This demonstrates the company’s ability to create value for shareholders.
In summary, the financial analysis reveals a company on a trajectory of sustained growth, effective financial management, and a commitment to delivering value to its shareholders. However, it should remain vigilant in managing expenses and explore avenues for further income diversification to ensure the continuation of this positive financial trend.
FAQs
What Is The Market Cap Of the Neuland Laboratories ?
As of August 28, 2023, the company is classified as a small-cap firm, boasting a market capitalization of Rs. 4920 Crore.
It’s projected that the share price could range from ₹3,504 (minimum) to ₹4,200 (maximum) by December 2023.
The projected share price for December 2025 has a potential range of ₹5,975 (minimum) to ₹33,845 (maximum).
Can Neuland Laboratories Reach ₹5000 INR?
According to our prediction, the company has the potential to achieve a value of 5,000 INR. However, this journey may involve fluctuations and uncertainties.
Should One Invest In Neuland Laboratories ?
In conclusion, investing in this company presents a mixed bag of potential opportunities and considerations. On one hand, there are positive aspects, such as a reduction in debt, expected strong quarterly performance, and a commendable 68.3% CAGR profit growth over the last 5 years. Moreover, the stock is currently trading at a relatively reasonable P/E ratio of 22.8. However, it’s worth noting that the company’s return on equity (ROE) over the last 3 years has been relatively low at 12.1%.
The market capitalization of ₹4,920 Cr. and a current price of ₹3,829 suggest that it’s a sizable player in its industry. The book value of ₹775 per share and a dividend yield of 0.26% provide additional insights. Furthermore, the return on capital employed (ROCE) stands at a healthy 20.8%.
Ultimately, whether or not to invest in this company depends on your risk tolerance, investment objectives, and confidence in its future performance. While it shows promise with its growth and financial metrics, it’s advisable to conduct further research and consider the broader economic and industry factors before making an investment decision
What did we learn?
