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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Neuland Laboratories Ltd

About the Company - Neuland Laboratories Ltd

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
Mr. Humayun DhanrajgirInd. Non-Executive Director
Mrs. Bharati RaoInd. Non-Executive Director
Dr. Nirmala MurthyInd. Non-Executive Director
Mr. Parampally Vasudeva MaiyaInd. Non-Executive Director
Mr. Homi Rustum KhusrokhanInd. Non-Executive Director
Mr. Prasad Raghava MenonInd. Non-Executive Director

Neuland Laboratories Ltd. Share Price Update

Share PriceValue
Today₹6,790.85
Previous Day₹6,513.30

Basic Stock Data of Neuland Laboratories Ltd

Market Cap 8,963 Cr.
Current Price 6,986
High / Low7,342/1,545
Stock P/E28.3
Book Value 883
Dividend Yield0.14 %
ROCE20.8 %
ROE17.9 %
Face Value 10.0

Data Source: screener.in

Competitors of Neuland Laboratories Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sun Pharmaceuticals Industries Ltd 3,72,869 Cr. 1,5541,568/92239.8 2490.74 %16.4 %16.6 % 1.00
Brooks Laboratories Ltd 319 Cr. 122186/56.5 30.10.00 %27.7 %23.4 % 10.0
Biofil Chemicals & Pharmaceuticals Ltd 110 Cr. 67.479.0/35.1166 10.90.00 %4.73 %3.28 % 10.0
Morepen Laboratories Ltd 2,641 Cr. 51.756.4/24.034.7 15.40.00 %8.57 %5.93 % 2.00
Par Drugs & Chemicals Ltd 260 Cr. 211248/12818.2 63.90.00 %23.0 %17.1 % 10.0
Industry Average75,239.80 Cr401.2251.7473.860.15%16.08%13.26%6.60

Neuland Laboratories Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales241245245201258236256221294269407363418
Expenses201199219175215204217193224215287266280
Operating Profit4147262643323929695412097137
OPM %17%19%10%13%17%14%15%13%24%20%29%27%33%
Other Income10152021101823
Interest4454433333424
Depreciation9101112121312131313131415
Profit before tax2932241228182413533911083122
Tax %25%16%29%28%26%29%10%26%28%22%23%26%27%
Net Profit2127179201322103831856289
EPS in Rs16.7120.8413.486.8015.8810.0916.987.7729.9823.8165.8948.2369.56

Neuland Laboratories Ltd Quarterly Chart

Neuland Laboratories Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4484614664695105795276677639379511,1911,581
Expenses4014023954024304724776086617908079181,105
Operating Profit47587167801065158102147144273476
OPM %11%13%15%14%16%18%10%9%13%16%15%23%30%
Other Income233021434160915
Interest33312527242119162218141315
Depreciation15151515161922263140495357
Profit before tax1163525426714205310582216419
Tax %-210%12%23%36%36%30%13%19%69%23%22%24%
Net Profit314271627471216168164164317
EPS in Rs2.8815.5730.1217.9630.7552.7413.5712.8112.6362.8549.74127.45247.12
Dividend Payout %0%7%9%8%7%0%0%0%16%8%10%8%

Neuland Laboratories Ltd Profit & Loss Yearly Chart

Neuland Laboratories Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:18%
3 Years:16%
TTM:45%
Compounded Profit Growth
10 Years:29%
5 Years:68%
3 Years:117%
TTM:220%
Stock Price CAGR
10 Years:37%
5 Years:67%
3 Years:61%
1 Year:340%
Return on Equity
10 Years:9%
5 Years:9%
3 Years:12%
Last Year:18%

Neuland Laboratories Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5889999131313131313
Reserves71921161521785375496866977748289811,120
Borrowings220211190188182192319231264182241128101
Other Liabilities130114169162155148194200257356302457431
Total Liabilities4264254835125248861,0711,1301,2311,3251,3831,5801,665
Fixed Assets151136131123139466475542653716767758800
CWIP2736354140201261042417204112
Investments7777788887410
Other Assets240246311340337393463476547585592781853
Total Assets4264254835125248861,0711,1301,2311,3251,3831,5801,665

Neuland Laboratories Ltd Reserves and Borrowings Chart

Neuland Laboratories Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 49264913453911705718960237
Cash from Investing Activity -5-7-10-14-20-42-116-77-49-84-95-61
Cash from Financing Activity -44-20-391-24-010512-5-11438-136
Net Cash Flow0-1-001-4-053-9340

Neuland Laboratories Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7878931008511413490918590111
Inventory Days118124138170182186266191209205227211
Days Payable141110139167121118189118110126100129
Cash Conversion Cycle559292103147182211162190164216193
Working Capital Days5176891241151391761261319312496
ROCE %11%15%19%16%18%16%4%4%8%11%10%21%

Neuland Laboratories Ltd Financial Efficiency Indicators Chart

Neuland Laboratories Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters36.22%36.22%36.22%36.22%36.22%36.22%36.22%36.14%36.14%36.03%35.97%32.80%
FIIs17.21%15.51%16.03%17.21%17.21%17.39%17.68%17.70%18.14%20.19%21.57%22.69%
DIIs5.30%4.42%5.65%6.17%6.38%6.45%6.57%6.54%7.10%6.76%6.99%6.02%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.44%0.46%0.40%0.40%0.40%0.40%
Public41.27%43.85%42.10%40.40%40.19%39.94%39.07%39.15%38.22%36.62%35.08%38.10%
No. of Shareholders22,41234,97834,33232,42632,25731,97630,60029,66926,94825,22326,82427,723

Neuland Laboratories Ltd Shareholding Pattern Chart

No. of Neuland Laboratories Ltd Shareholders

Neuland Laboratories Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Small Cap Fund1164490.5763.66
WhiteOak Capital Flexi Cap Fund577561.1931.57
WhiteOak Capital Mid Cap Fund275051.1515.04
WhiteOak Capital Multi Cap Fund110911.176.06
Motilal Oswal Nifty Microcap 250 Index Fund90880.874.97
WhiteOak Capital Balanced Advantage Fund75320.564.12
WhiteOak Capital ELSS Tax Saver Fund24831.231.36
WhiteOak Capital Large Cap Fund21110.311.15
WhiteOak Capital Multi Asset Allocation Fund18820.421.03
WhiteOak Capital Balanced Hybrid Fund7620.550.42

Neuland Laboratories Ltd ROCE Trend

Neuland Laboratories Ltd EPS Trend

Neuland Laboratories Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)127.4549.7462.8512.6313.06
Diluted EPS (Rs.)127.4549.7462.8512.6313.06
Cash EPS (Rs.)167.6687.4993.2636.8132.79
Book Value[Excl.RevalReserv]/Share (Rs.)769.94650.88608.98549.68541.43
Book Value[Incl.RevalReserv]/Share (Rs.)770.59651.52609.63550.33542.08
Revenue From Operations / Share (Rs.)923.37737.24726.26591.23516.90
PBDIT / Share (Rs.)218.28112.16126.2981.9947.95
PBIT / Share (Rs.)177.3774.1595.5257.7527.91
PBT / Share (Rs.)167.2463.6981.6541.0215.76
Net Profit / Share (Rs.)126.7549.4762.5012.5712.74
NP After MI And SOA / Share (Rs.)126.7549.4762.5012.5712.74
PBDIT Margin (%)23.6315.2117.3813.869.27
PBIT Margin (%)19.2010.0513.159.765.39
PBT Margin (%)18.118.6311.246.933.04
Net Profit Margin (%)13.726.718.602.122.46
NP After MI And SOA Margin (%)13.726.718.602.122.46
Return on Networth / Equity (%)16.467.6010.262.282.35
Return on Capital Employeed (%)20.059.3712.888.524.48
Return On Assets (%)10.354.616.081.311.45
Long Term Debt / Equity (X)0.070.120.110.100.08
Total Debt / Equity (X)0.120.270.180.340.30
Asset Turnover Ratio (%)0.800.700.730.640.60
Current Ratio (X)1.731.601.491.441.39
Quick Ratio (X)1.100.870.810.820.79
Inventory Turnover Ratio (X)1.791.711.881.901.96
Dividend Payout Ratio (NP) (%)3.926.033.1830.530.00
Dividend Payout Ratio (CP) (%)2.963.412.1310.420.00
Earning Retention Ratio (%)96.0893.9796.8269.470.00
Cash Earning Retention Ratio (%)97.0496.5997.8789.580.00
Interest Coverage Ratio (X)21.5510.729.104.903.95
Interest Coverage Ratio (Post Tax) (X)13.515.735.501.752.05
Enterprise Value (Cr.)2383.791534.952819.28564.231041.87
EV / Net Operating Revenue (X)2.001.613.010.731.56
EV / EBITDA (X)8.4710.6117.315.3316.84
MarketCap / Net Operating Revenue (X)1.951.392.870.471.30
Retention Ratios (%)96.0793.9696.8169.460.00
Price / BV (X)2.341.583.430.511.25
Price / Net Operating Revenue (X)1.951.392.870.471.30
EarningsYield0.070.040.020.040.01

Neuland Laboratories Ltd Profitability Ratios (%)

Neuland Laboratories Ltd Liquidity Ratios

Neuland Laboratories Ltd Liquidity Ratios (%)

Neuland Laboratories Ltd Interest Coverage Ratios (%)

Neuland Laboratories Ltd Valuation Ratios

Fair Value of Neuland Laboratories Ltd Stock

Fair Value: ₹4479.28

The stock is overvalued by 35.88% compared to the current price ₹6986

*Investments are subject to market risks

Strength and Weakness of Neuland Laboratories Ltd Stock

StrengthWeakness
  1. The company has higher reserves (521.62 cr) compared to borrowings (203.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (521.54 cr) and profit (84.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 86.54 and average Dividend Yield of 11.51%.
  2. The stock has a low average ROCE of 12.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 111.67, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 150.58, which may not be favorable.

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