NSEI:NEULANDLAB

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NEULANDLAB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

NEULANDLAB

8.9%

IN Pharmaceuticals

9.3%

IN Market


1 Year Return

-56.3%

NEULANDLAB

-17.1%

IN Pharmaceuticals

-29.6%

IN Market

Return vs Industry: NEULANDLAB underperformed the Indian Pharmaceuticals industry which returned -21.9% over the past year.

Return vs Market: NEULANDLAB underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

NEULANDLABIndustryMarket
7 Day-3.1%8.9%9.3%
30 Day-32.5%-8.8%-23.3%
90 Day-35.9%-10.2%-28.0%
1 Year-56.0%-56.3%-15.8%-17.1%-28.2%-29.6%
3 Year-82.7%-82.8%-25.6%-27.5%-15.8%-20.5%
5 Year-25.3%-26.1%-37.2%-39.4%-4.7%-9.6%

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 compared to its fair value and its price relative to the market?

32.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEULANDLAB (₹255.35) is trading below our estimate of fair value (₹399.44)

Significantly Below Fair Value: NEULANDLAB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEULANDLAB is good value based on its PE Ratio (10.2x) compared to the Pharmaceuticals industry average (11x).

PE vs Market: NEULANDLAB is poor value based on its PE Ratio (10.2x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: NEULANDLAB is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: NEULANDLAB is good value based on its PB Ratio (0.5x) compared to the IN Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

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

38.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEULANDLAB's forecast earnings growth (38.1% per year) is above the savings rate (6.5%).

Earnings vs Market: NEULANDLAB's earnings (38.1% per year) are forecast to grow faster than the Indian market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NEULANDLAB's revenue (13.7% per year) is forecast to grow faster than the Indian market (8.9% per year).

High Growth Revenue: NEULANDLAB's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEULANDLAB's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Neuland Laboratories performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEULANDLAB has high quality earnings.

Growing Profit Margin: NEULANDLAB's current net profit margins (4.3%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: NEULANDLAB's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: NEULANDLAB's earnings growth over the past year (109.2%) exceeds its 5-year average (0.2% per year).

Earnings vs Industry: NEULANDLAB earnings growth over the past year (109.2%) exceeded the Pharmaceuticals industry 22%.


Return on Equity

High ROE: NEULANDLAB's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Neuland Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: NEULANDLAB's short term assets (₹4.9B) exceed its short term liabilities (₹3.7B).

Long Term Liabilities: NEULANDLAB's short term assets (₹4.9B) exceed its long term liabilities (₹1.0B).


Debt to Equity History and Analysis

Debt Level: NEULANDLAB's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: NEULANDLAB's debt to equity ratio has reduced from 125.2% to 28.1% over the past 5 years.

Debt Coverage: NEULANDLAB's debt is well covered by operating cash flow (44.9%).

Interest Coverage: NEULANDLAB's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: NEULANDLAB has a high level of physical assets or inventory.

Debt Coverage by Assets: NEULANDLAB's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEULANDLAB's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: NEULANDLAB's dividend (0.78%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

Stable Dividend: NEULANDLAB's dividend payments have been volatile in the past 10 years.

Growing Dividend: NEULANDLAB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.8%), NEULANDLAB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEULANDLAB's dividends in 3 years are forecast to be thoroughly covered by earnings (7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Davuluri Rao (44yo)

6.67s

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

Compensation vs Market: Davuluri 's total compensation ($USD165.84K) is above average for companies of similar size in the Indian market ($USD48.15K).

Compensation vs Earnings: Davuluri 's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Davuluri Rama Rao
Chairmanno data₹13.25m29.75% 1.1b
Davuluri Rao
Vice Chairman & CEO6.67yrs₹12.50m3.25% 118.2m
Davuluri Rao
Joint MD & Whole-Time Director10.92yrs₹12.50m1.9% 69.0m
Amit Agarwal
Chief Financial Officer2.42yrsno datano data
Sarada Bhamidipati
Company Secretary & Compliance Officer8.25yrsno datano data
Y. Sudheer
Head of Marketingno datano datano data
Shashank Mahashabde
President of Business Development & Contract Manufacturingno datano datano data
Ponnaiah Ravi
Senior Vice President of R&D10yrsno datano data
Sophia Lily
Head of Compliance-Quality Department7.67yrsno datano data
Y. Kizawa
President of Neuland Laboratories K.K. Japanno datano datano data

7.7yrs

Average Tenure

56yo

Average Age

Experienced Management: NEULANDLAB's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Davuluri Rama Rao
Chairmanno data₹13.25m29.75% 1.1b
Davuluri Rao
Vice Chairman & CEO6.67yrs₹12.50m3.25% 118.2m
Davuluri Rao
Joint MD & Whole-Time Director10.92yrs₹12.50m1.9% 69.0m
Humayun Dhanrajgir
Non-Executive Independent Director25.67yrs₹650.00k0.026% 931.3k
Homi Khusrokhan
Non-Executive Independent Director1.17yrs₹50.00kno data
Bharati Rao
Non-Executive & Independent Director5.92yrs₹780.00kno data
Parampally Maiya
Non-Executive & Independent Director20.75yrs₹860.00k0.016% 567.0k
Christopher Cimarusti
Non-Executive Director10.5yrs₹500.00kno data
William Mitchell
Non-Executive & Independent Director11.92yrs₹470.00kno data
Nirmala Murthy
Non-Executive Independent Director4.92yrs₹760.00kno data

10.7yrs

Average Tenure

74yo

Average Age

Experienced Board: NEULANDLAB's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NEULANDLAB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Neuland Laboratories Limited
  • Ticker: NEULANDLAB
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹3.637b
  • 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 areas, including antiasthmatics, cardiovasculars, antifungal, anticonvulsants, antiemetic, central nervous system (cns), fluoroquinolones, corticosteroids, antipsychotic, antibacterial and anti-parkinson, anti-ulcerants, and prostaglandins. It also provides custom manufacturing solutions, as well as peptide synthesis services. The company was founded in 1984 and is headquartered in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 12:59
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.