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Last Updated on: 31 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 524558 | NSE: NEULANDLAB

Neuland Laboratories Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 31, 2024, 8:11 am

Market Cap 17,764 Cr.
Current Price 13,846
High / Low 18,100/5,021
Stock P/E67.3
Book Value 1,087
Dividend Yield0.10 %
ROCE33.3 %
ROE26.4 %
Face Value 10.0
PEG Ratio2.38

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Neuland Laboratories Ltd

Competitors of Neuland Laboratories Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
MPS Pharmaa Ltd 8.05 Cr. 4.21 4.33/2.79 0.800.00 %9.15 %34.9 % 10.0
Gujarat Themis Biosyn Ltd 3,274 Cr. 300 390/17062.1 20.50.22 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 62.3 Cr. 83.9 94.9/27.023.8 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 35.4 Cr. 24.2 27.0/8.7446.0 6.640.00 %2.65 %2.08 % 10.0
Godavari Drugs Ltd 84.3 Cr. 112 155/87.012.6 55.40.00 %14.4 %15.5 % 10.0
Industry Average19,528.12 Cr1,193.9155.65184.740.31%16.14%16.48%6.30

All Competitor Stocks of Neuland Laboratories Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales258236256221294269407363418393385440311
Expenses215204217193224215287266280272278316249
Operating Profit4332392969541209713712110712362
OPM %17%14%15%13%24%20%29%27%33%31%28%28%20%
Other Income02110182325254
Interest4333334244431
Depreciation12131213131313141515161616
Profit before tax281824135339110831221049213049
Tax %26%29%10%26%28%22%23%26%27%22%27%25%34%
Net Profit20132210383185628981689833
EPS in Rs15.8810.0916.987.7729.9823.8165.8948.2369.5663.4452.6676.2825.60

Last Updated: November 12, 2024, 4:25 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 12, 2024, 4:25 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4614664695105795276677639379511,1911,5591,528
Expenses4023954024304724776086617908079181,0961,115
Operating Profit587167801065158102147144273463414
OPM %13%15%14%16%18%10%9%13%16%15%23%30%27%
Other Income3302143416091237
Interest31252724211916221814131411
Depreciation15151516192226314049536064
Profit before tax163525426714205310582216401376
Tax %12%23%36%36%30%13%19%69%23%22%24%25%
Net Profit14271627471216168164164300280
EPS in Rs15.5730.1217.9630.7552.7413.5712.8112.6362.8549.74127.45233.89217.98
Dividend Payout %7%9%8%7%0%0%0%16%8%10%8%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)92.86%-40.74%68.75%74.07%-74.47%33.33%0.00%406.25%-20.99%156.25%82.93%
Change in YoY Net Profit Growth (%)0.00%-133.60%109.49%5.32%-148.54%107.80%-33.33%406.25%-427.24%177.24%-73.32%

Neuland Laboratories Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:19%
3 Years:18%
TTM:5%
Compounded Profit Growth
10 Years:27%
5 Years:79%
3 Years:62%
TTM:-1%
Stock Price CAGR
10 Years:39%
5 Years:100%
3 Years:108%
1 Year:162%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:18%
Last Year:26%

Last Updated: Unknown

Balance Sheet

Last Updated: November 12, 2024, 4:25 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital88999913131313131313
Reserves921161521785375496866977748289811,2701,382
Borrowings21119018818219231923126418224112895109
Other Liabilities114169162155148194200257356302457454439
Total Liabilities4254835125248861,0711,1301,2311,3251,3831,5801,8331,944
Fixed Assets136131123139466475542653716767758824812
CWIP36354140201261042417204146139
Investments777788887411105
Other Assets246311340337393463476547585592781962888
Total Assets4254835125248861,0711,1301,2311,3251,3831,5801,8331,944

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +264913453911705718960237261
Cash from Investing Activity +-7-10-14-20-42-116-77-49-84-95-61-150
Cash from Financing Activity +-20-391-24-010512-5-11438-136-69
Net Cash Flow-1-001-4-053-934042

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-153.00-119.00-121.00-102.00-86.00-268.00-173.00-162.00-35.00-97.00145.00368.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days7893100851141349091859011187
Inventory Days124138170182186266191209205227211220
Days Payable110139167121118189118110126100129121
Cash Conversion Cycle9292103147182211162190164216193187
Working Capital Days7689124115139176126131931249698
ROCE %15%19%16%18%16%4%4%8%11%10%21%33%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters36.22%36.22%36.22%36.22%36.14%36.14%36.03%35.97%32.80%32.74%32.72%32.64%
FIIs17.21%17.21%17.39%17.68%17.70%18.14%20.19%21.57%22.69%24.43%25.72%26.46%
DIIs6.17%6.38%6.45%6.57%6.54%7.10%6.76%6.99%6.02%6.54%6.39%6.38%
Government0.00%0.00%0.00%0.44%0.46%0.40%0.40%0.40%0.40%0.40%0.40%0.40%
Public40.40%40.19%39.94%39.07%39.15%38.22%36.62%35.08%38.10%35.88%34.77%34.12%
No. of Shareholders32,42632,25731,97630,60029,66926,94825,22326,82427,72328,61629,07734,567

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund116,4490.5763.669,0882024-12-281181.35%
WhiteOak Capital Flexi Cap Fund57,7561.1931.579,0882024-12-28535.52%
WhiteOak Capital Mid Cap Fund27,5051.1515.049,0882024-12-28202.65%
WhiteOak Capital Multi Cap Fund11,0911.176.069,0882024-12-2822.04%
Motilal Oswal Nifty Microcap 250 Index Fund9,0880.874.979,0882024-12-280%
WhiteOak Capital Balanced Advantage Fund7,5320.564.129,0882024-12-28-17.12%
WhiteOak Capital ELSS Tax Saver Fund2,4831.231.369,0882024-12-28-72.68%
WhiteOak Capital Large Cap Fund2,1110.311.159,0882024-12-28-76.77%
WhiteOak Capital Multi Asset Allocation Fund1,8820.421.039,0882024-12-28-79.29%
WhiteOak Capital Balanced Hybrid Fund7620.550.429,0882024-12-28-91.62%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)233.89127.4549.7462.8512.63
Diluted EPS (Rs.)233.89127.4549.7462.8512.63
Cash EPS (Rs.)278.89167.6687.4993.2636.81
Book Value[Excl.RevalReserv]/Share (Rs.)993.65769.94650.88608.98549.68
Book Value[Incl.RevalReserv]/Share (Rs.)994.31770.59651.52609.63550.33
Revenue From Operations / Share (Rs.)1208.16923.37737.24726.26591.23
PBDIT / Share (Rs.)368.31218.28112.16126.2981.99
PBIT / Share (Rs.)322.03177.3774.1595.5257.75
PBT / Share (Rs.)311.18167.2463.6981.6541.02
Net Profit / Share (Rs.)232.61126.7549.4762.5012.57
NP After MI And SOA / Share (Rs.)232.61126.7549.4762.5012.57
PBDIT Margin (%)30.4823.6315.2117.3813.86
PBIT Margin (%)26.6519.2010.0513.159.76
PBT Margin (%)25.7518.118.6311.246.93
Net Profit Margin (%)19.2513.726.718.602.12
NP After MI And SOA Margin (%)19.2513.726.718.602.12
Return on Networth / Equity (%)23.4016.467.6010.262.28
Return on Capital Employeed (%)29.5720.059.3712.888.52
Return On Assets (%)16.3710.354.616.081.31
Long Term Debt / Equity (X)0.030.070.120.110.10
Total Debt / Equity (X)0.060.120.270.180.34
Asset Turnover Ratio (%)0.910.800.700.730.64
Current Ratio (X)2.151.731.601.491.44
Quick Ratio (X)1.331.100.870.810.82
Inventory Turnover Ratio (X)2.011.791.711.881.90
Dividend Payout Ratio (NP) (%)4.273.926.033.1830.53
Dividend Payout Ratio (CP) (%)3.562.963.412.1310.42
Earning Retention Ratio (%)95.7396.0893.9796.8269.47
Cash Earning Retention Ratio (%)96.4497.0496.5997.8789.58
Interest Coverage Ratio (X)33.9421.5510.729.104.90
Interest Coverage Ratio (Post Tax) (X)22.4413.515.735.501.75
Enterprise Value (Cr.)8068.902383.791534.952819.28564.23
EV / Net Operating Revenue (X)5.182.001.613.010.73
EV / EBITDA (X)16.988.4710.6117.315.33
MarketCap / Net Operating Revenue (X)5.201.951.392.870.47
Retention Ratios (%)95.7296.0793.9696.8169.46
Price / BV (X)6.322.341.583.430.51
Price / Net Operating Revenue (X)5.201.951.392.870.47
EarningsYield0.030.070.040.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Neuland Laboratories Ltd as of December 31, 2024 is: 19,332.26

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 31, 2024, Neuland Laboratories Ltd is Undervalued by 39.62% compared to the current share price 13,846.00

Intrinsic Value of Neuland Laboratories Ltd as of December 31, 2024 is: 24,791.62

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 31, 2024, Neuland Laboratories Ltd is Undervalued by 79.05% compared to the current share price 13,846.00

Last 5 Year EPS CAGR: 28.24%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (634.00 cr) compared to borrowings (194.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (487.15 cr) and profit (111.69 cr) over the years.
  1. The stock has a low average ROCE of 14.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 115.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 161.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Neuland Laboratories Ltd:
    1. Net Profit Margin: 19.25%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 29.57% (Industry Average ROCE: 16.01%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 23.4% (Industry Average ROE: 15.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 22.44
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.33
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 67.3 (Industry average Stock P/E: 45.36)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Neuland Laboratories Ltd. is a Public Limited Listed company incorporated on 07/01/1984 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L85195TG1984PLC004393 and registration number is 004393. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company’s Total Operating Revenue is Rs. 951.08 Cr. and Equity Capital is Rs. 12.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals11th Floor (5th Office Level), Phoenix IVY Building, Hyderabad Telangana 500033ir@neulandlabs.com
http://www.neulandlabs.com
Management
NamePosition Held
Dr. Davuluri Rama Mohan RaoExecutive Chairman
Mr. Davuluri Sucheth RaoVice Chairman & CEO
Mr. Davuluri Saharsh RaoVice Chairman & Mng.Director
Dr. Christopher M CimarustiNon Executive Director
Dr. Nirmala MurthyIndependent Director
Mr. Homi Rustum KhusrokhanIndependent Director
Mr. Prasad Raghava MenonIndependent Director
Mr. Sugata SircarIndependent Director
Ms. Pallavi Joshi BakhruIndependent Director

FAQ

What is the latest intrinsic value of Neuland Laboratories Ltd?

The latest intrinsic value of Neuland Laboratories Ltd as on 31 December 2024 is ₹19332.26, which is 39.62% higher than the current market price of ₹13,846.00. The stock has a market capitalization of 17,764 Cr. and recorded a high/low of 18,100/5,021 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,382 Cr and total liabilities of ₹1,944 Cr.

What is the Market Cap of Neuland Laboratories Ltd?

The Market Cap of Neuland Laboratories Ltd is 17,764 Cr..

What is the current Stock Price of Neuland Laboratories Ltd as on 31 December 2024?

The current stock price of Neuland Laboratories Ltd as on 31 December 2024 is 13,846.

What is the High / Low of Neuland Laboratories Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Neuland Laboratories Ltd stocks is 18,100/5,021.

What is the Stock P/E of Neuland Laboratories Ltd?

The Stock P/E of Neuland Laboratories Ltd is 67.3.

What is the Book Value of Neuland Laboratories Ltd?

The Book Value of Neuland Laboratories Ltd is 1,087.

What is the Dividend Yield of Neuland Laboratories Ltd?

The Dividend Yield of Neuland Laboratories Ltd is 0.10 %.

What is the ROCE of Neuland Laboratories Ltd?

The ROCE of Neuland Laboratories Ltd is 33.3 %.

What is the ROE of Neuland Laboratories Ltd?

The ROE of Neuland Laboratories Ltd is 26.4 %.

What is the Face Value of Neuland Laboratories Ltd?

The Face Value of Neuland Laboratories Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Neuland Laboratories Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE