BSE:524558

Stock Analysis Report

Executive Summary

Neuland Laboratories Limited manufactures and sells active pharmaceutical ingredients (APIs) in India, Europe, the United States, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Risks

  • Neuland Laboratories has significant price volatility in the past 3 months.
  • Neuland Laboratories is covered by less than 3 analysts.

Share Price & News

How has Neuland Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

BSE:524558

1.3%

IN Pharmaceuticals

1.5%

IN Market


1 Year Return

-36.2%

BSE:524558

-24.4%

IN Pharmaceuticals

-11.2%

IN Market

524558 underperformed the Pharmaceuticals industry which returned -24.4% over the past year.

524558 underperformed the Market in India which returned -11.2% over the past year.


Share holder returns

524558IndustryMarket
7 Day1.2%1.3%1.5%
30 Day-2.5%4.1%1.1%
90 Day-11.4%1.4%-6.7%
1 Year-36.1%-36.2%-23.7%-24.4%-9.5%-11.2%
3 Year-50.6%-50.7%-22.7%-24.3%19.7%13.7%
5 Year-1.1%-1.9%-6.3%-9.2%34.6%21.9%

Price Volatility Vs. Market

How volatile is Neuland Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Neuland Laboratories undervalued based on future cash flows and its price relative to the stock market?

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Neuland Laboratories's share price is below the future cash flow value, and at a moderate discount (> 20%).

Neuland Laboratories's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Neuland Laboratories is overvalued based on earnings compared to the IN Pharmaceuticals industry average.

Neuland Laboratories is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Neuland Laboratories is good value based on expected growth next year.


Price Based on Value of Assets

Neuland Laboratories is good value based on assets compared to the IN Pharmaceuticals industry average.


Next Steps

Future Growth

How is Neuland Laboratories expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

50.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Neuland Laboratories's revenue is expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).

Neuland Laboratories's earnings are expected to grow significantly at over 20% yearly.

Neuland Laboratories's revenue growth is expected to exceed the India market average.

Neuland Laboratories's earnings growth is expected to exceed the India market average.

Neuland Laboratories's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Neuland Laboratories will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Neuland Laboratories performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Neuland Laboratories's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Neuland Laboratories's 1-year earnings growth exceeds its 5-year average (64.1% vs -5.5%)

Neuland Laboratories's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (64.1% vs 15.4%).


Return on Equity

Neuland Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Neuland Laboratories used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Neuland Laboratories's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Neuland Laboratories's financial position?


Financial Position Analysis

Neuland Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Neuland Laboratories's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Neuland Laboratories's level of debt (33.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (144.7% vs 33.1% today).

Debt is well covered by operating cash flow (30.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

What is Neuland Laboratories's current dividend yield, its reliability and sustainability?

0.63%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Neuland Laboratories's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.57%).

Neuland Laboratories's dividend is below the markets top 25% of dividend payers in India (2.35%).

Neuland Laboratories is not paying a notable dividend for India, therefore no need to check if the payments are stable.

Neuland Laboratories is not paying a notable dividend for India, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Neuland Laboratories's dividends as it is not paying a notable one for India.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Neuland Laboratories's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

Davuluri Rao (44yo)

6.1yrs

Tenure

₹12,500,000

Compensation

Mr. Davuluri Sucheth Rao has been the Chief Executive Officer of Neuland Laboratories Limited since August 1, 2013, where Mr. Rao also served as its Chief Operating Officer. He served as Production Group L ...


CEO Compensation Analysis

Davuluri 's remuneration is higher than average for companies of similar size in India.

Davuluri 's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.1yrs

Average Tenure

56yo

Average Age

The average tenure for the Neuland Laboratories management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.1yrs

Average Tenure

74yo

Average Age

The average tenure for the Neuland Laboratories board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Davuluri Rama Rao (75yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹13.25m
  • Y. Sudheer (56yo)

    Head of Marketing

    • Tenure: 0yrs
  • Davuluri Rao (44yo)

    Vice Chairman & CEO

    • Tenure: 6.1yrs
    • Compensation: ₹12.50m
  • Davuluri Rao (40yo)

    Joint MD & Whole-Time Director

    • Tenure: 10.3yrs
    • Compensation: ₹12.50m
  • Y. Kizawa

    President of Neuland Laboratories K.K. Japan

    • Tenure: 0yrs
  • Sarada Bhamidipati

    Company Secretary & Compliance Officer

    • Tenure: 7.7yrs
  • Ponnaiah Ravi (57yo)

    Senior Vice President of R&D

    • Tenure: 9.4yrs
  • Shashank Mahashabde

    President of Business Development & Contract Manufacturing

    • Tenure: 0yrs
  • Sophia Lily

    Head of Compliance-Quality Department

    • Tenure: 7.1yrs
  • Amit Agarwal

    Chief Financial Officer

    • Tenure: 1.8yrs

Board Members

  • Davuluri Rama Rao (75yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹13.25m
  • Humayun Dhanrajgir (83yo)

    Non-Executive Independent Director

    • Tenure: 25.1yrs
    • Compensation: ₹650.00k
  • Homi Khusrokhan (75yo)

    Non-Executive Independent Director

    • Tenure: 0.6yrs
    • Compensation: ₹50.00k
  • Bharati Rao (71yo)

    Non-Executive & Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹780.00k
  • Parampally Maiya (81yo)

    Non-Executive & Independent Director

    • Tenure: 20.2yrs
    • Compensation: ₹860.00k
  • Davuluri Rao (44yo)

    Vice Chairman & CEO

    • Tenure: 6.1yrs
    • Compensation: ₹12.50m
  • Davuluri Rao (40yo)

    Joint MD & Whole-Time Director

    • Tenure: 10.3yrs
    • Compensation: ₹12.50m
  • Chris Cimarusti (76yo)

    Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: ₹500.00k
  • Will Mitchell (66yo)

    Non-Executive & Independent Director

    • Tenure: 11.3yrs
    • Compensation: ₹470.00k
  • Nirmala Murthy (73yo)

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹760.00k

Company Information

Neuland Laboratories Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neuland Laboratories Limited
  • Ticker: 524558
  • Exchange: BSE
  • Founded: 1984
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹6.318b
  • Shares outstanding: 12.83m
  • Website: https://www.neulandlabs.com

Number of Employees


Location

  • Neuland Laboratories Limited
  • Sanali Info Park
  • A Block, Ground Floor
  • Hyderabad
  • Andhra Pradesh
  • 500034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524558BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2000
NEULANDLABNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2000

Biography

Neuland Laboratories Limited manufactures and sells active pharmaceutical ingredients (APIs) in India, Europe, the United States, and internationally. The company's APIs are used in various therapeutic are ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:40
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.