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Check Before You Invest : Neuland Laboratories Ltd

BSE: 524558 NSE: NEULANDLAB ISIN: INE794A01010
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Neuland Laboratories Ltd belong to?
Neuland Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Neuland Laboratories Ltd a good quality company?
Neuland Laboratories Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Neuland Laboratories Ltd undervalued or overvalued?
Neuland Laboratories Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Neuland Laboratories Ltd a good buy now?
Neuland Laboratories Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Neuland Laboratories Ltd?
Neuland Laboratories Ltd revenue growth is -5.2% for FY-2025 , which is below its 5 year CAGR of 14.1% , indicating slower growth.
Q.2 Gross Profit margin of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.7% for FY-2025 , which is above its 5 year median of 22.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.32% for FY-2025 , which is in line with its 5 year median of 22.32% indicating stable margins.
Q.4 Net Profit Margin of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Net Profit Margin is 17.57% for FY-2025 , is above with its 5 year median of 13.69%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 22.7 22.5
Operating Profit Margin 22.32 22.32
Net Profit Margin 17.57 13.69
Q.5 Return on Asset of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Return on Asset is 12.94%, which is above its 5 year historical median of 11.02%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Return on equity is 18.58% for FY-2025 , which is above its historical median of 17.9%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Return on capital employed is 23.49% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Cash conversion cycle is 100 days, below its historical median of 106 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.74 0.74
ROE 18.58 17.9
ROCE 23.49 20.99
Cash Conversion Cycle 100 days 106 days
Q.9 Debt to Equity ratio of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Debt-to-Equity ratio is 0.09 , which is lower with the industry average of 0.15 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Neuland Laboratories Ltd?
Neuland Laboratories Ltd Debt to cash flow from operations is 0.43 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Neuland Laboratories Ltd?
Promoters hold 32.63% of the Neuland Laboratories Ltd, with 2.29% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Neuland Laboratories Ltd vs industry peers?
Neuland Laboratories Ltd revenue CAGR is 14.13% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,476.8 137.1
Gross Profit 335.3 15.1
Operating Profit 322 16
Net Profit 259 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.74 0.8
ROE 18.58 8.91
ROCE 23.49 11.59
Cash Conversion Cycle (days) 100.44 76

Valuation & price assessment

Q.1 Stock return of Neuland Laboratories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 35.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 35.5% 44.5% 95.3% 19.2%
Q.3 Valuation ratios of Neuland Laboratories Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 107.81 49.97 40.28
Price to Book 11.64 1.76 2.77
Price to Sales 12.21 1.61 2.65
EV to EBITDA 56.48 12.26 15.67

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