Mehabe score: 6 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Neuland Laboratories is engaged in manufacturing and selling of bulk drugs and caters to both domestic and international markets.#
Main Points
Business Segments
The company has three business segments namely Prime API, Niche-Specialty API & CMS.
It largely caters to small/mid-size venture backed biotech companies which are working on new products. It caters to a wide number of clients, both in India and overseas.Site:NEULANDLAB
Market Cap:
Rs 2,668 cr
Price:
2079.0
Trading pe:
33.1x
Book-value:
613/share
Div yield:
0.10 %
Earning yield:
4.34%
Face-value:
10.0/share
52week high:
2844.40
52week low:
398.05
Technical Analysis
Stock trades at 2079.0, below its 50dma 2189.66. However it is trading above its 200dma 1681.27. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 2189.66.
The 52 week high is at 2844.40 and the 52week low is at 398.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 24.17% CAGR over last 5 years
Weakness
– Stock is trading at 3.39 times its book value
– has a low return on equity of 5.44% for last 3 years.
-Promoter holding has decreased over last 3 years: -15.46%
Competition
– The industry trades at a mean P/E of 23.1x. Sequent Scien. trades at the industry’s max P/E of 66.93x. NEULANDLAB trades at a P/E of 33.1x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. NEULANDLAB has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 1.1%. The max 1- month return was given by Gland Pharma: a return of 9.82 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 245.0 cr compared to Rs 192.0 cr for period ended Mar 2020, a rise of 27.6%
Operating Profits reported at Rs 26.0 cr for period ended Mar 2021 vis-vis 30.0 for period ended Mar 2020 .
Operating Margins contracted -501.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 13.48 compared to Rs 20.84 for previous quarter ended Dec 2020 and Rs -7.25 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 937.0 cr for period ended Mar 2021 vis-vis sales of Rs 763.0 cr for the period ended Mar 2020, a healthy growth of 18.6%. The 3 year sales cagr stood at 21.1%.
Operating margins expanded to 16.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 81.0 cr for period ended Mar 2021 vis-vis sales of Rs 16.0 cr for the period ended Mar 2020, rising 80.2%.
Company recorded a healthy Net Profit CAGR of 89.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 189.0 cr for period ended Mar 2021 vis-vis Rs 57.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 408% on a 1 Year basis vis-vis a return of 44% over the last 3 Years. – The compounded sales growth on a TTM bassis is 23% vis-vis a compounded sales growth of 21% over the last 3 Years. – The compounded profit growth on a TTM basis is 401% vis-vis a compounded profit growth of 88% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 17.21% vis-vis 15.92% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.27% vis-vis 40.73% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 24.17% CAGR over last 5 years – Stock is trading at 3.39 times its book value
– has a low return on equity of 5.44% for last 3 years.
-Promoter holding has decreased over last 3 years: -15.46%
