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Neuland Laboratories Ltd logo

Neuland Laboratories Ltd

NSE: NEULANDLAB BSE: 524558

13532

(3.85)%

Mon, 09 Feb 2026, 06:17 am

Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (10.5x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (15.9x coverage).
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Cons

  • Dividend payments have increased, but Neuland Laboratories only paid a dividend in the past 7 years.
  • Neuland Laboratories has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Neuland Laboratories's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Neuland Laboratories's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Neuland Laboratories is expected to increase by more than 50% in 2 years time.
  • Neuland Laboratories's earnings are expected to grow significantly at over 20% yearly.
  • Neuland Laboratories's earnings growth is expected to exceed the India market average.
  • Neuland Laboratories's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Neuland Laboratories's earnings are expected to exceed the low risk growth rate next year.
  • Neuland Laboratories's net income is expected to increase by more than 50% in 2 years time.
  • An improvement in Neuland Laboratories's performance (ROE) is expected over the next 3 years.
  • Neuland Laboratories's revenue growth is expected to exceed the India market average.
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Cons

  • Neuland Laboratories is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Pharmaceuticals industry average.
  • Neuland Laboratories's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Neuland Laboratories's revenue is expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Neuland Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Neuland Laboratories is profitable, therefore cash runway is not a concern.
  • Neuland Laboratories is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (23.4%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 2.1x debt.
  • Neuland Laboratories's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (117.3% vs 34.6% today).
  • Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
  • Neuland Laboratories's level of debt (34.6%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Neuland Laboratories board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • More shares have been bought than sold by Neuland Laboratories individual insiders in the past 3 months.
  • The average tenure for the Neuland Laboratories management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Davuluri 's remuneration is higher than average for companies of similar size in India.
  • Davuluri 's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

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Pros

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    Cons

    • Neuland Laboratories has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Neuland Laboratories's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Neuland Laboratories's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Neuland Laboratories used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
      • Neuland Laboratories's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Neuland Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Neuland Laboratories's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.

      value

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      Pros

      • Neuland Laboratories is good value based on assets compared to the IN Pharmaceuticals industry average.
      • Neuland Laboratories is good value based on expected growth next year.
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      Cons

      • Neuland Laboratories's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Neuland Laboratories's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Neuland Laboratories is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
      • Neuland Laboratories is overvalued based on earnings compared to the India market.
      • 524558 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.
      • 524558 underperformed the Market in India which returned -14.5% over the past year.
      • BSE:524558 is down -2.4% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
      • BSE:524558 is down -2.4% underperforming the market in India which returned 8% over the past month.

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