Neuland Laboratories - Improved Products Mix To Drive Growth: DRChoksey

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..DRChoksey Research Report.Neuland Laboratories Ltd. has witnessed marked improvement in Ebitda level profitability over FY19-FY24. This was majorly driven by steady shift from low margin to high margin specialty and custom manufacturing services as it transitioned to a larger pipeline of CMS services for innovator companies and expanded its specialty offerings including peptides. Share of CMS services has increased to 49% of revenue in FY24 versus 37% in FY23 and 11% in FY14. The company’s stock is trading at 28.7 times/22.8 times its FY25E /FY26E consensus EPS. This, when compared with Divis Labs (55.7 times/45.4 times its FY25E/FY26E EPS) and Laurus Labs (103.0 times/30.4 times its FY25E/FY26E EPS) indicating attractive valuation for Neuland Pharma. .We track Neuland Lab, as of now, without any coverage. The company enjoys much better asset turns vs. its peers. However, the margins for the company are likely to normalize in FY25E versus FY24 on account of-ongoing investments in capacity additions,lead time for ramp up in commercialization of new molecules and unlikely repeat of favorable business mix and benign input cost in FY25. .However, the management also believes that improved business is likely over medium term with the ramp up in CMS and specialty..Click on the attachment to read the full report:.Dr. Reddy's - Nicotinell Acquisition To Boost OTC Presence: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Neuland Laboratories - Improved Products Mix To Drive Growth: DRChoksey

The management also believes that improved business is likely over medium term with the ramp up in CMS and specialty.

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