1194.10 71.15 (6.34%)
NSESep 18, 2020 03:31 PM
The 4 reports from 2 analysts offering long term price targets for Neuland Laboratories Ltd. have an average target of 973.00. The consensus estimate represents a downside of -18.52% from the last price of 1194.10.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-08-05||Neuland Laboratories..||BP Wealth||786.55||973.00||786.55 (51.81%)||Target met||Buy|
low our estimate of INR 2,149mn. The revenue growth was mainly driven by the CMS (25.4% YoY growth) segment, led by 32 molecules (Development + Commercialize) with speciality API segment, which grew by 33.2% in Q1FY21. EBITDA margin expanded by 622bps to 16.5% level, which was 219bps higher than our estimate driven by 580bps improvement in gross margin led by improved product mix. Management is confident to improve margin profile from current level on the back of strong order book in CMS business, better traction in GDS business and cost optimization measures....
|2020-05-24||Neuland Laboratories..||BP Wealth||441.00||584.00||441.00 (170.77%)||Target met||Sell|
below our estimate of INR 2,032mn. The revenue growth was mainly driven by the CMS (62% YoY growth) segment, led by 25 molecules with speciality API segment, which grew by 18.9% in Q4FY20. EBITDA margin expanded by 498bps to 15.6% level, which was 274bps higher than our estimate due...
|2020-01-09||Neuland Laboratories..||BP Wealth||457.50||663.00||457.50 (161.01%)||Target met||Buy|
|2019-12-06||Neuland Laboratories..||Prabhudas Lilladhar||418.95||418.95 (185.02%)||Mgmt Note|
the business model and growth outlook till FY23E. NLL is in a slow growth phase with CAGR of 10% in revenues, while EBITDA and PAT declined at 9% and 16% over FY16-19. NLL underwent sharp decline of 700bps led by surge in raw material prices in China. Although worst seems over in terms of margins, significant expansion is unlikely to meet management guidance of 200bps/year beyond FY20E. We believe that Salmeterol API scale up for supplying to partners in US remains uncertain as it lacks clarity over the approvals of gAdvair from USFDA. Given the uncertain volatility over the...
|2019-08-16||Neuland Laboratories..||HDFC Securities||504.30||725.00||504.30 (136.78%)||Target met||Buy|
We continue to believe NLL is best-placed to benefit from the lack of third-party API suppliers who manufacture low-volume high-quality APIs, with its strength in complex chemical processes. The steady growth in the CMS portfolio (16% CQGR over the last 5 quarters), the launch of gSalmeterol in the US, and stable pricing in the Prime API segment are some of the key reasons for us to build in 13% revenue CAGR over FY19-21E. On the profitability front too, albeit a bit late, we expect to see a steady ramp up over FY20E as the contribution of Niche API and CMS segments is expected to increase, coupled with alleviated raw material prices and backward integration. Model 650bps margin expansion and expect NLL to deliver 101% EPS CAGR over FY19-21E. We maintain BUY on NLL following a mixed quarter. Our TP is revised to Rs 725 (14x FY21E EPS). The scale up in lucrative products like Salmeterol and Austedo remain key triggers for improvement in operational performance.
|2019-05-19||Neuland Laboratories..||HDFC Securities||674.50||920.00||674.50 (77.03%)||Buy|
Easing of raw material price hikes, higher capacity utilization (Unit-3) and scale up in high margin segments (Niche API, CMS) will enable robust revenue growth (~13%) and sharp margin recovery over FY19-21E. The US Salmeterol market is also gaining traction and we believe Neuland is well placed to benefit from this opportunity, which will reflect in improved operating performance over the next two years. Additionally, another potential blockbuster, Austedo, is expected to ramp up by FY21E. We maintain our positive stance on the company owing to a high visibility on growth and attractive valuations of 21/10x FY20/21E P/E at CMP. We maintain BUY on NLL following a beat on our estimates. Our TP is revised to Rs 920/sh (14x FY21E EPS). Hopes are hinged on ramp up in critical products like Austedo and Salmeterol.
|2019-02-14||Neuland Laboratories..||HDFC Securities||560.00||830.00||560.00 (113.23%)||Buy|
Remain bullish on the stock and maintain BUY with a TP of Rs 830 (14x Dec-20E EPS). Neuland Labs (NLL) reported encouraging numbers with 41% YoY revenue growth and a 73% YoY jump in EBITDA in 3QFY19. However, EBITDA margin remained muted at 9% of sales (in line) on account of continued raw material pressure, underutilized facilities and inferior business mix. PAT at Rs 46mn was up 5x YoY.
|2018-08-12||Neuland Laboratories..||HDFC Securities||680.00||914.00||680.00 (75.60%)||Buy|
Maintain BUY with a TP of Rs 914 (16x FY20E EPS) Neuland Labs (NLL) delivered poor performance in its 1QFY19 results. Revenue grew 31%YoY to Rs 1.54bn (down 4%QoQ) and EBITDA at Rs 90mn was up 11.3%YoY (sequential drop of 52%) with margin at 5.8% (declining by ~100bpsYoY). PAT reduced by 37%YoY and 95%QoQ, standing at Rs 4.1mn.
|2018-05-12||Neuland Laboratories..||HDFC Securities||786.50||1000.00||786.50 (51.82%)||Buy|
Re-iterate BUY with a TP of Rs 1,000 (16x on FY20E EPS). Ahead of expectations, Neuland Labs (NLL) ended the year with improved business performance. Top line grew 13.2% YoY/31.5% QoQ to Rs 1.6bn, with significant jump seen in Ciprofloxacin and Levetiracetam revenues during this quarter. EBITDA declined 34%YoY to Rs 188mn. However, sequential growth of 105% was encouraging. EBITDA margin stood at 11.7% (down 838bps YoY, up 420bps QoQ and 170bps ahead of expectation). Reported PAT after merging with NHSPL and NPRPL, came in at Rs 81mn in 4QFY18.
|2018-03-15||Neuland Laboratories..||HDFC Securities||703.00||1065.00||703.00 (69.86%)||Buy|
Initiate coverage with a BUY rating and target price of Rs 1,065 (16x FY20E). Although NCE drug research remains a distant dream for Indian pharma companies, they are making strong inroads into API CRAMS which is at the core of innovation for pharma MNCs. Neuland Labs (NLL) is one among these Indian companies. NLL has made great strides in API CRAMS over the past few years and has managed to win clients from key regulated markets like the US, Europe and Japan.
|2016-11-09||Neuland Laboratories..||BOB Capital Markets Ltd.||1004.65||1762.00||1004.65 (18.86%)||Buy|
BOB Capital Markets Ltd.
Amalgamation Scheme: The scheme involves issue of fresh equity shares by NLL to NHSPL and NPRPL which would increase NLL's equity by 25.6%. Promoter holding would change from 51.68% to 41.29 % post-merger. This would likely come into effect from Q2FY18. The amalgamation is aimed at building stronger business and financials, obtain tax benefits by clubbing R&D; services required for CMS business & better operational convenience. Going forward, we expect NLL to enjoy high margins led by strong...
|2016-09-30||Neuland Laboratories..||BOB Capital Markets Ltd.||967.00||1762.00||967.00 (23.49%)||Buy|
BOB Capital Markets Ltd.
Strengthening High-Margin Product Portfolio: Being a pure generic API Player, NLL is shifting its focus to high margin products like Niche molecules and CMS. Revenue from Niche Molecule/CMS has grown at a CAGR of 28%/28% over FY14-FY16 and is expected to grow at a CAGR of 17%/38% over FY16-19e. As a result of this strong business mix, the EBITDA has grown at a CAGR of 6.7% over FY14-16 and going ahead the growth expected to be at a CAGR of ~25% over FY16-19e. The EBITDA...
|2014-12-13||Neuland Laboratories..||Karvy||437.35||606.00||437.35 (173.03%)||Target met||Buy|