Neuland Laboratories Ltd. (NEULANDLAB) AI Stock Analysis

• Market Cap: ₹169.90B
• Dividend Yield: 0.08%
• Average Volume (3M): 2.41K
• Price to Earnings (P/E): 70.7
• Beta (1Y): 0.92
• Revenue Growth: 0.34%
• EPS Growth: -14.13%
• Country: IN
• Employees: 1,643
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 75.50
• Shares Outstanding: 12,829,889
• 10 Day Avg. Volume: 1,318
• 30 Day Avg. Volume: 2,408
• PEG Ratio: -4.25
• Price to Book (P/B): 9.66
• Price to Sales (P/S): 9.98
• P/FCF Ratio: 132.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹14,368.00 ▼(-5.88% Downside)

Neuland Laboratories shows strong financial performance with significant revenue growth and a robust balance sheet. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential overbought conditions. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth Trajectory

Sustained ~33.6% revenue growth indicates expanding API volumes and better commercialization of projects. Durable growth strengthens customer relationships, funds reinvestment in capacity and R&D, and supports the shift from development projects to recurring commercial supply over the medium term.

Balance Sheet Strength

A strong equity base and solid balance-sheet metrics provide financial flexibility for capex, capacity expansion and to withstand regulatory or industry cycles. This stability supports long-term contracts and investment in specialized API capabilities without immediate refinancing pressure.

Operating Cash Generation

Consistent operating cash flow underpins the business model's cash-generative nature, allowing the company to fund CMS projects, maintain facilities and pursue new development work internally. Reliable cash generation reduces dependency on external financing for medium-term growth.

Negative Factors

Rising Total Debt

Rising debt increases fixed obligations and interest exposure, which can constrain flexibility if revenue or margins soften. For a capital-intensive API manufacturer, higher leverage raises refinancing and coverage risks over multiple quarters and can limit funding for opportunistic investments.

Earnings Volatility

Negative EPS growth signals variability in bottom-line performance despite top-line expansion. Persistent EPS declines can reflect margin pressure, project timing or pricing cycles in APIs and CMS work, making earnings less predictable and complicating long-term planning and reinvestment decisions.

Cash Flow and Margin Variability

Fluctuations in free cash flow and mixed net profit margins suggest sensitivity to project timing, working capital swings and product mix. Such variability can impair consistent reinvestment and heighten reliance on external capital during downturns or when scaling new commercial supplies.

Neuland Laboratories Ltd. Business Overview & Revenue Model

Company Description

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, central nervous system, fluoroquinolones, antipsychotic, antibacterial, and anti-parkinson. It also provides custom manufacturing solutions, as well as peptide synthesis services. The company was incorporated in 1984 and is headquartered in Hyderabad, India.

How the Company Makes Money

Neuland Laboratories generates revenue primarily through the sale of Active Pharmaceutical Ingredients (APIs) and intermediates to pharmaceutical companies worldwide. The company operates on a business model that includes both contract manufacturing and proprietary product development, allowing it to cater to diverse client needs. Key revenue streams include bulk sales of APIs, custom synthesis projects, and partnerships with multinational pharmaceutical firms. Additionally, the company benefits from strategic alliances that enhance its market reach and product offerings, contributing significantly to its earnings. Factors such as regulatory compliance, production capacity, and technological advancements also play a crucial role in driving revenue growth.

Neuland Laboratories Ltd. Financial Statement Overview

Summary

Neuland Laboratories presents a strong financial position with substantial revenue growth and improving margins. The balance sheet is robust with a strong equity position, though there is a notable increase in debt. Cash flow management is sound but shows some variability. Overall, the company is well-positioned for future growth, though attention to debt levels and cash flow stability is advisable.

Income Statement

Neuland Laboratories has demonstrated significant revenue growth over the past five years, with a notable jump from 2020 to 2024. Margins have generally improved, particularly the gross profit margin, indicating efficient cost management. However, net profit margins have seen mixed results, indicating potential volatility in net earnings. Overall, the income statement reflects a strong growth trajectory with some fluctuations in profitability.

Balance Sheet

The company's balance sheet is robust, with a strong equity position and a healthy debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is high, which showcases stability and a solid asset base. However, there is a notable increase in total debt over recent years, which could pose a risk if not managed carefully. Overall, the balance sheet suggests financial stability with controlled leverage.

Cash Flow

Neuland Laboratories has shown consistent operating cash flow, supporting its operational needs. Free cash flow has improved significantly since 2020, although there was a decrease in 2025. The operating cash flow to net income ratio suggests efficient cash generation relative to net income. However, fluctuations in free cash flow growth indicate potential variability in cash generation capacity. Overall, cash flow management appears sound but with some variability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.30B	14.77B	15.59B	11.61B	9.23B	9.24B
Gross Profit	6.40B	7.26B	8.25B	5.47B	3.70B	3.63B
EBITDA	3.14B	4.20B	4.75B	2.79B	1.40B	1.63B
Net Income	1.76B	2.60B	3.00B	1.64B	638.22M	806.31M
Balance Sheet
Total Assets	0.00	21.80B	18.33B	15.80B	13.83B	13.25B
Cash, Cash Equivalents and Short-Term Investments	2.40B	3.67B	1.03B	454.16M	84.68M	105.51M
Total Debt	0.00	1.57B	953.90M	1.28B	2.41B	1.82B
Total Liabilities	-15.25B	6.55B	5.50B	5.86B	5.43B	5.38B
Stockholders Equity	15.25B	15.25B	12.83B	9.94B	8.41B	7.86B
Cash Flow
Free Cash Flow	0.00	1.11B	1.18B	1.71B	-372.97M	839.65M
Operating Cash Flow	0.00	3.17B	2.61B	2.37B	603.89M	1.89B
Investing Cash Flow	0.00	-2.98B	-1.50B	-614.99M	-955.16M	-844.24M
Financing Cash Flow	0.00	249.61M	-692.82M	-1.36B	377.21M	-1.14B

Neuland Laboratories Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15265.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEULANDLAB, the sentiment is Negative. The current price of 15265.6 is above the 20-day moving average (MA) of 13902.99, above the 50-day MA of 15204.57, and above the 200-day MA of 14189.24, indicating a bearish trend. The MACD of -679.24 indicates Positive momentum. The RSI at 38.24 is Neutral, neither overbought nor oversold. The STOCH value of 22.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NEULANDLAB.

Neuland Laboratories Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATCOPHARM	76 Outperform	₹149.64B	9.72	―	0.57%	-3.79%	-20.88%
GRANULES	73 Outperform	₹138.45B	25.38	―	0.24%	8.14%	5.18%
MARKSANS	70 Neutral	₹74.07B	21.06	―	0.44%	14.80%	1.35%
CAPLIPOINT	69 Neutral	₹135.13B	22.95	―	0.31%	11.41%	19.22%
NEULANDLAB	67 Neutral	₹169.90B	70.75	―	0.08%	0.34%	-14.13%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Neuland Laboratories Ltd. Corporate Events

Neuland Laboratories Opens Special Window for Re-lodgement of Physical Share Transfers

Neuland Laboratories Ltd. has notified the stock exchanges that it has published newspaper advertisements regarding a special window for the re-lodgement of transfer requests for physical shares, in compliance with SEBI’s Listing Obligations and Disclosure Requirements. The move is aimed at informing and facilitating shareholders who still hold physical share certificates, underscoring the company’s efforts to align with evolving securities market regulations and to smoothen the transition and rectification process for such investors.