NSEI:NEULANDLAB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.

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

4.0%

NEULANDLAB

-1.0%

IN Pharmaceuticals

-0.4%

IN Market


1 Year Return

149.5%

NEULANDLAB

50.1%

IN Pharmaceuticals

2.3%

IN Market

Return vs Industry: NEULANDLAB exceeded the Indian Pharmaceuticals industry which returned 50.1% over the past year.

Return vs Market: NEULANDLAB exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

NEULANDLABIndustryMarket
7 Day4.0%-1.0%-0.4%
30 Day15.0%-0.3%3.3%
90 Day76.8%12.8%6.7%
1 Year150.6%149.5%52.1%50.1%4.0%2.3%
3 Year17.0%16.2%29.8%26.3%0.6%-4.1%
5 Year72.4%70.9%0.5%-3.1%42.3%31.8%

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?

59.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEULANDLAB (₹1217) is trading above our estimate of fair value (₹364.68)

Significantly Below Fair Value: NEULANDLAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEULANDLAB is poor value based on its PE Ratio (59.4x) compared to the IN Pharmaceuticals industry average (22.8x).

PE vs Market: NEULANDLAB is poor value based on its PE Ratio (59.4x) compared to the Indian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: NEULANDLAB is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: NEULANDLAB's PB Ratio (2.1x) is in line with the IN Pharmaceuticals industry average.


Next Steps

Future Growth

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

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEULANDLAB's forecast earnings growth (28.2% per year) is above the savings rate (7.2%).

Earnings vs Market: NEULANDLAB's earnings (28.2% per year) are forecast to grow faster than the Indian market (25.5% per year).

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

Revenue vs Market: NEULANDLAB's revenue (9.8% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: NEULANDLAB's revenue (9.8% 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 (9%).


Next Steps

Past Performance

How has Neuland Laboratories performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEULANDLAB has high quality earnings.

Growing Profit Margin: NEULANDLAB's current net profit margins (3.3%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: NEULANDLAB's earnings have declined by 9.8% per year over the past 5 years.

Accelerating Growth: NEULANDLAB's earnings growth over the past year (18.7%) exceeds its 5-year average (-9.8% per year).

Earnings vs Industry: NEULANDLAB earnings growth over the past year (18.7%) exceeded the Pharmaceuticals industry 14.7%.


Return on Equity

High ROE: NEULANDLAB's Return on Equity (3.6%) 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 (₹5.2B) exceed its short term liabilities (₹3.6B).

Long Term Liabilities: NEULANDLAB's short term assets (₹5.2B) exceed its long term liabilities (₹1.6B).


Debt to Equity History and Analysis

Debt Level: NEULANDLAB's debt to equity ratio (36.6%) is considered satisfactory.

Reducing Debt: NEULANDLAB's debt to equity ratio has reduced from 111.8% to 36.6% over the past 5 years.

Debt Coverage: NEULANDLAB's debt is well covered by operating cash flow (22.1%).

Interest Coverage: NEULANDLAB's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEULANDLAB's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: NEULANDLAB's dividend (0.17%) is low compared to the top 25% of dividend payers in the Indian market (2.3%).


Stability and Growth of Payments

Stable Dividend: NEULANDLAB is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: NEULANDLAB is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NEULANDLAB is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NEULANDLAB's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Davuluri Rao (45 yo)

7.17yrs

Tenure

₹22,000,000

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. At Neuland, Sucheth has been re ...


CEO Compensation Analysis

Compensation vs Market: Davuluri's total compensation ($USD298.65K) is about average for companies of similar size in the Indian market ($USD317.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Davuluri Rama Rao
Executive Chairman & Chief Promoterno data₹24.00m29.75%
₹ 4.6b
Davuluri Rao
Vice Chairman & CEO7.17yrs₹22.00m3.9%
₹ 609.3m
Davuluri Rao
Vice Chairman & Joint MD0.17yr₹20.00m1.98%
₹ 308.3m
Amit Agarwal
Chief Financial Officer2.92yrsno datano data
Deepak Gupta
Chief Financial Officer0.083yrno datano data
Sarada Bhamidipati
Company Secretary & Compliance Officer8.75yrsno 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&D10.5yrsno datano data
Sophia Lily
Head of Compliance-Quality Department8.17yrsno datano data
Y. Kizawa
President of Neuland Laboratories K.K. Japanno datano datano data
Mike Anwer
Executive Officerno datano datano data

7.2yrs

Average Tenure

57yo

Average Age

Experienced Management: NEULANDLAB's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Davuluri Rama Rao
Executive Chairman & Chief Promoterno data₹24.00m29.75%
₹ 4.6b
Davuluri Rao
Vice Chairman & CEO7.17yrs₹22.00m3.9%
₹ 609.3m
Davuluri Rao
Vice Chairman & Joint MD0.17yr₹20.00m1.98%
₹ 308.3m
Humayun Dhanrajgir
Non-Executive Independent Director26.17yrs₹490.00k0.026%
₹ 4.0m
Homi Khusrokhan
Non-Executive Independent Director1.67yrs₹620.00kno data
Bharati Rao
Non-Executive & Independent Director6.42yrs₹760.00kno data
Parampally Maiya
Non-Executive & Independent Director21.25yrs₹790.00k0.016%
₹ 2.4m
Christopher Cimarusti
Non-Executive Director11yrs₹1.92mno data
William Mitchell
Non-Executive & Independent Director12.42yrs₹520.00kno data
Nirmala Murthy
Non-Executive Independent Director5.42yrs₹740.00kno data

8.7yrs

Average Tenure

75yo

Average Age

Experienced Board: NEULANDLAB's board of directors are considered experienced (8.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NEULANDLAB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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: ₹15.604b
  • Shares outstanding: 12.83m
  • Website: https://www.neulandlabs.com

Number of Employees


Location

  • Neuland Laboratories Limited
  • Sanali Info Park
  • A Block, Ground Floor
  • Hyderabad
  • 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 Analysis2020/10/22 12:53
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.