Neuland Laboratories Ltd.
NSE: NEULANDLABNeuland Laboratories Ltd.: A 30-second snapshot
Neuland Laboratories is a Hyderabad-based pharmaceutical API and contract manufacturing services company trading at 16,590, up 31.9% over the past year and 25.8% over the past three months. FY26 standalone net sales rose 136.4% year-on-year to 776 crore, with five-year earnings growth of 664.9% off a low base, a trailing PE of 58.2, and a forward PE of 36.0. The balance sheet carries a D/E of 16.07 that is elevated relative to pharma sector peers, though the debt trend is classified as falling.
P/E
58.2
Forward P/E
36.0
ROE
—
Debt / Equity
16.07
Profit Margin
+2.3%
Div. Yield
+0.2%
5Y ROE > 15%
3/5
5Y FCF > 0
3/5
Quality
66/100
News
7 headlines · 5 positive · 0 negative
NEULANDLAB.NS Earnings Beat: Revenue Surges 7% Above Estimates - Meyka
Meyka
NEULANDLAB: Record FY 2026 growth led by CMS and peptides, with strong margins and robust long-term outlook - TradingView
TradingView
Neuland Lab Standalone March 2026 Net Sales at Rs 776.25 crore, up 136.4% Y-o-Y - Moneycontrol.com
Moneycontrol.com
NEULANDLAB: FY26 revenue and profit surged on CMS growth, margin expansion, and strategic investments - TradingView
TradingView
Nifty Pharma hits record high in weak market; 56 stocks beat index gains - Business Today
Business Today
Recent context
- ·FY26 results released in May 2026 showed March quarter revenue up 136.4% year-on-year with earnings described as a record, driven by CMS and peptides growth and margin expansion per TradingView and Moneycontrol reporting (May 12, 2026).
- ·Revenue came in approximately 7% above analyst estimates per Meyka (May 14, 2026); all 7 news items in the coverage window carried positive or neutral sentiment with zero negative items.
- ·Nifty Pharma reached a record high during the period per Business Today (May 11, 2026), providing a sector-level tailwind context for the individual stock's 25.8% three-month gain.
Strengths
- +Revenue and earnings scaled sharply over five years — FY26 standalone net sales up 136.4% year-on-year and five-year earnings growth of 664.9% — reflecting a substantial ramp in the CMS and peptides business segments.
- +At 16,590, the stock trades above both the 50-DMA (14,148) and 200-DMA (14,715) with an RSI of 61.5 in neutral territory, indicating recent price appreciation without an immediate overbought condition.
- +Debt trend is classified as falling in the persistence data and FCF has been positive in 3 of the measured years, suggesting the elevated D/E ratio may be on a declining trajectory rather than compounding.
- +Forward PE of 36.0 represents a 38% compression from the trailing PE of 58.2, implying the analyst consensus embeds a meaningful step-up in earnings over the next 12 months relative to the trailing period.
Weaknesses
- −D/E of 16.07 is substantially above typical non-bank pharma sector norms; even with a falling trend, the absolute level creates meaningful sensitivity to interest rate movements or any cash flow shortfall in the CMS pipeline.
- −Net profit margin of 2.29% is thin in absolute terms despite strong revenue growth, indicating that cost structures have not yet scaled proportionately with the top line and leaving limited buffer against margin pressure.
- −ROE data is unavailable, making direct benchmarking of capital efficiency against peers Cipla (11.74%) and Dr. Reddy's (11.84%) impossible — a gap in the quality picture that the quality score of 46 only partially compensates for.
- −PE ranking is 4th of 6 among listed sector peers, and no resistance levels are identified above the current price of 16,590, meaning the stock is trading in historically uncharted territory with no technical price anchors above it.
Open questions
- ?Does the 664.9% five-year earnings growth represent a durable structural re-rating of the CMS business, or is a meaningful portion attributable to cyclical recovery from pandemic-era lows or one-time contract wins that may not recur?
- ?How does the D/E of 16.07 decompose between long-term capacity expansion debt and short-term working capital obligations, and what is the trend of interest coverage across recent quarters?
- ?With no resistance levels identified above 16,590, what valuation anchors — peer-based multiples, historical PE ranges, or discounted earnings — would provide context for assessing the current trailing PE of 58.2?
- ?If the forward PE of 36.0 requires a significant earnings step-up to materialise, which business segments — CMS, generic APIs, or peptides — carry the most execution risk in FY27 and beyond?
Peer comparison: Pharma
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| NEULANDLAB | Neuland Laboratories Ltd.You're viewing | 58.2 | — | 46 |
| Industry avg | across 5 peers | 46.9 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.4 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.5 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.7 | +11.8% | 17 |
Technical state
Current price
₹16,590.00
SMA 50
₹14,147.78
SMA 200
₹14,715.31
RSI (14)
61.5 (neutral)
From 52w high
-16.0%
1Y return
+31.9%
3M return
+25.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highD/E of 16.07 is substantially above typical pharma/API sector levels; peers shown include Cipla and Dr. Reddy's which carry far lower leverage. For a non-financial company, this leverage level amplifies downside sensitivity to interest rate changes or revenue disruption.
- mediumNet profit margin of 2.29% is thin despite a 664.9% five-year earnings growth headline. Absolute profitability remains narrow, and the margin leaves limited buffer against cost increases, raw-material inflation, or pricing pressure in CMS and peptide segments.
- mediumNo resistance levels are identified in the technical data, indicating the stock at 16,590 is trading above all recent historical ranges. The nearest support levels are 14,283, 12,770, and 12,552 — approximately 14%, 23%, and 24% below current price respectively.
- lowROE is not available in the data. Without this metric, capital efficiency relative to peers (Cipla ROE 11.74%, Dr. Reddy's 11.84%) cannot be directly benchmarked, creating an information gap in quality assessment.
- lowAnalyst coverage is limited to 4 analysts. Thin coverage increases the risk of delayed market response to material corporate developments in either direction.
Cross-section contradictions
- Five-year earnings growth of 664.9% alongside a current net profit margin of just 2.29% is internally consistent with a low base-effect recovery, but the gap between the growth headline and the absolute margin level warrants scrutiny of earnings quality and sustainability.
- Price is 12.7% above SMA200 and up 31.9% over 12 months, while the stock sits 16% below its 52-week high — the recent 3-month surge (+25.8%) has partially recovered a prior drawdown, making the momentum picture mixed relative to the multi-year fundamental trajectory.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days