Neuland Laboratories Ltd (NEULANDLAB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Granules India

Natco Pharma

Caplin Point Lab

ERIS Lifescience

Alembic Pharma

Piramal Pharma

Neuland Labs.

Jubilant Pharmo

OneSource Speci.

Wockhardt

Rubicon Research

Why is Neuland Laboratories Ltd ?

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

With ROE of 12.1, it has a Very Expensive valuation with a 9.5 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 1.89%, its profits have fallen by -25.4%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Neuland Labs. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Neuland Labs.

3.69%

0.04

46.21%

Sensex

-3.62%

-0.31

12.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

35.61%

ROCE (avg)

18.62%

ROE (avg)

14.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.50

EV to EBIT

66.01

EV to EBITDA

48.68

EV to Capital Employed

9.03

EV to Sales

9.84

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

14.67%

ROE (Latest)

12.09%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What 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

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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 Cr

MOJO 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 Cr

MOJO 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 periods

MOJO 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 periods

MOJO 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 periods

MOJO 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 periods

MOJO 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 quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income