ScoreWhy is Neuland Laboratories Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.10 times
2
Poor long term growth as Net Sales has grown by an annual rate of 12.25% and Operating profit at 15.28% over the last 5 years
- PBT LESS OI(Q) At Rs 46.43 cr has Fallen at -21.7% (vs previous 4Q average)
- ROCE(HY) Lowest at 14.48%
- INVENTORY TURNOVER RATIO(HY) Lowest at 2.80 times
3
With ROE of 12.1, it has a Very Expensive valuation with a 14.1 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 43.44%, its profits have fallen by -25.4%
4
High Institutional Holdings at 36.3%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.69% over the previous quarter.
5
Consistent Returns over the last 3 years
- Along with generating 43.44% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Neuland Labs. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Neuland Labs. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Neuland Labs.
43.44%
0.96
45.05%
Sensex
-3.74%
-0.28
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.25%
EBIT Growth (5y)
15.28%
EBIT to Interest (avg)
18.18
Debt to EBITDA (avg)
0.83
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
0.98
Tax Ratio
25.60%
Dividend Payout Ratio
5.95%
Pledged Shares
2.29%
Institutional Holding
36.30%
ROCE (avg)
18.62%
ROE (avg)
14.60%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
127
Industry P/E
35
Price to Book Value
14.06
EV to EBIT
97.49
EV to EBITDA
71.90
EV to Capital Employed
13.33
EV to Sales
14.53
PEG Ratio
NA
Dividend Yield
0.07%
ROCE (Latest)
14.67%
ROE (Latest)
12.09%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET SALES(Latest six months)
At Rs 953.98 cr has Grown at 34.58%
PAT(Latest six months)
Higher at Rs 137.42 cr
-24What is not working for the Company
PBT LESS OI(Q)
At Rs 46.43 cr has Fallen at -21.7% (vs previous 4Q average
ROCE(HY)
Lowest at 14.48%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.80 times
PAT(Q)
At Rs 40.57 cr has Fallen at -17.1% (vs previous 4Q average
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 56.56 cr
DEBT-EQUITY RATIO(HY)
Highest at 0.16 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.48 times
INTEREST(Q)
Highest at Rs 6.79 cr
Loading Valuation Snapshot...
Here's what is working for Neuland Labs.
Net Sales - Latest six months
At Rs 953.98 cr has Grown at 34.58%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Neuland Labs.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 46.43 cr has Fallen at -21.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 59.32 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Interest - Quarterly
At Rs 6.79 cr has Grown at 26.44%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Quarterly
At Rs 40.57 cr has Fallen at -17.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 48.95 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 2.80 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Interest - Quarterly
Highest at Rs 6.79 cr
in the last five quarters and Increased by 26.44 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 56.56 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Highest at 0.16 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 3.48 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 8.05 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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