Pharmaceutical company Neuland Laboratories Ltd. has disclosed to the national exchanges through a filing on Tuesday that the company has approved capital expenditure worth Rs 342 crore for two of its units in Telangana.
Amount worth Rs 254 crore from the capex is expected to be utilised for the enhancement of the company's unit located in Bonthapally village with a proposed capacity addition of 6.37 kilolitres, to support development and commercial production of peptides for the company's GDS & CMS business.
This addition is expected to be executed by fiscal 2027. The company plans to fund this capex through debt and internal accruals, as per an exchange filing.
The remaining Rs 88 crore is expected to be used for an addition of 52 kilolitres to the existing 321 kilolitres capacity of the company's Gaddapotharam village unit. This capacity is expected to come online in 15 to 18 months.
Neuland Laboratories is a global active pharmaceutical ingredient contract development and manufacturing organisation. The company works with biotechnology and pharmaceutical firms to help design, develop, and manufacture complex active pharmaceutical ingredients.
The company specialises in developing small molecules and peptides for clinical trials, which is expected to provide seamless scalability from initial stages to full-scale commercial manufacturing.
Shares of Neuland Laboratories closed 4.78% lower at Rs 13,155 apiece on the NSE, compared to a 1.37% decrease in the benchmark Nifty 50.
The stock has risen 134.22% over the past 12 months. Two analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 36.7%.
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