Up 5,500% in 5 yrs! What Nuvama says on this Kedia, Mukul Agrawal-owned multibagger stock
Nuvama Institutional Equities has initiated coverage on a Multibagger pharma stock, which is also owned by season stock market investors like Vijay Kedia and Mukul Mahavir Agrawal.
- Sep 5, 2025,
- Updated Sep 5, 2025 9:20 AM IST
Domestic brokerage firm Nuvama Institutional Equities has initiated coverage on a Multibagger pharma stock, which is also owned by season stock market investors like Vijay Kedia and Mukul Mahavir Agrawal. It see up 21 per cent upside in the counter.
Neuland Laboratories, founded in 1984, is positioned for substantial growth in the complex contract manufacturing sector. The company's revenue is projected to grow 1.8 times from FY25 to FY28, with the high-margin Contract Manufacturing Services (CMS) segment contributing significantly to this growth, said Nuvama Institutional Equities.
The firm's recent expansion of capacity, from 901 KL in FY24 to 1,175 KL in FY25, provides a strong foundation for this projected growth. Notably, its Unit III has expanded significantly, though utilisation remains under 40%, suggesting room for further growth. This expansion offers visibility for growth until FY28, it noted.
Neuland's growth strategy includes scaling up its production capabilities, particularly in Bempedoic acid and Xanomeline, which are expected to drive CMS growth by 2.6 times over the forecast period. The company has increased its Bempedoic acid manufacturing capacity from 50T to 150T, potentially tripling revenue at peak utilisation, said Nuvama.
Shares of Neuland Laboratories had settled at Rs 14,605.60 on Thursday, and the stock opened half a per cent higher at Rs 14675.35. The total market capitalization of the company stood close at Rs 19,000 crore. It is down 20 per cent from its 52-week at Rs 18,089.55 hit in December 2024.
Shares of Neuland Labs have zoomed more than 5,540 per cent in little more than 5 years as the stock was trading around Rs 260 apiece in March 2020. It is up 15 per cent in the last one month, while it has surged 950 per cent in the last three years. The stock has surged 46 per cent from its 52-week low at Rs 10,060, hit 4 months ago in April 2025.
In terms of financial projections, Neuland is expected to achieve a compound annual growth rate (CAGR) of 21% in revenue, 37% in EBITDA, and 45% in PAT from FY25 to FY28. The stock is currently trading at 39x FY27E EPS, with Nuvama valuing it at 44x Sep-27E EPS, aligning with peer averages. The brokerage has initiated coverage with a 'BUY' rating and a target price of Rs 17,700
However, Nuvama has penciled product and customer concentration, potential product destocking, and regulatory challenges as the key risks for the company.
Mutual funds and domestic insurance companies own more than 9.06 per cent stake in the company as of June 30, 2025. Ace stock market investors including Mukul Agrawal and Vijay Kedia are among the key shareholders of the company as of the shareholding pattern of the company June 2025 quarter. Mukul Mahavir Agrawal owned 4,00,000 lakh equity shares, or 3.12 per cent stake in the company valued at Rs 584.22 crore as of Q1FY25. Vijay Kedia, through Kedia Securities owned 1,30,000 equity shares, or 1.01 per cent stake, worth Rs 189.87 crore in Neuland Labs as of the recent quarter ended on June 30, 2025.
Despite a weak 1Q performance, the management remains confident of strong growth in FY26 with healthy profitability as they expect the launch of new CMS molecule in 2HFY26. Commercialisation of new CMS molecule and ramp-up of Cobenfy/KAR-XT (Xanomeline) can help sustain change in sales mix towards more profitable CMS segment, said said B&K Securities.
"Overall, we remain on positive on Neuland due to its strong ongoing capex programmes for future growth plus plans to acquire additional land at Unit 1 for future capacity expansion and healthy CMS pipeline with 98 molecules at various stages of development," it added with a 'buy' rating and a target price of Rs 16,000 on the stock.
Domestic brokerage firm Nuvama Institutional Equities has initiated coverage on a Multibagger pharma stock, which is also owned by season stock market investors like Vijay Kedia and Mukul Mahavir Agrawal. It see up 21 per cent upside in the counter.
Neuland Laboratories, founded in 1984, is positioned for substantial growth in the complex contract manufacturing sector. The company's revenue is projected to grow 1.8 times from FY25 to FY28, with the high-margin Contract Manufacturing Services (CMS) segment contributing significantly to this growth, said Nuvama Institutional Equities.
The firm's recent expansion of capacity, from 901 KL in FY24 to 1,175 KL in FY25, provides a strong foundation for this projected growth. Notably, its Unit III has expanded significantly, though utilisation remains under 40%, suggesting room for further growth. This expansion offers visibility for growth until FY28, it noted.
Neuland's growth strategy includes scaling up its production capabilities, particularly in Bempedoic acid and Xanomeline, which are expected to drive CMS growth by 2.6 times over the forecast period. The company has increased its Bempedoic acid manufacturing capacity from 50T to 150T, potentially tripling revenue at peak utilisation, said Nuvama.
Shares of Neuland Laboratories had settled at Rs 14,605.60 on Thursday, and the stock opened half a per cent higher at Rs 14675.35. The total market capitalization of the company stood close at Rs 19,000 crore. It is down 20 per cent from its 52-week at Rs 18,089.55 hit in December 2024.
Shares of Neuland Labs have zoomed more than 5,540 per cent in little more than 5 years as the stock was trading around Rs 260 apiece in March 2020. It is up 15 per cent in the last one month, while it has surged 950 per cent in the last three years. The stock has surged 46 per cent from its 52-week low at Rs 10,060, hit 4 months ago in April 2025.
In terms of financial projections, Neuland is expected to achieve a compound annual growth rate (CAGR) of 21% in revenue, 37% in EBITDA, and 45% in PAT from FY25 to FY28. The stock is currently trading at 39x FY27E EPS, with Nuvama valuing it at 44x Sep-27E EPS, aligning with peer averages. The brokerage has initiated coverage with a 'BUY' rating and a target price of Rs 17,700
However, Nuvama has penciled product and customer concentration, potential product destocking, and regulatory challenges as the key risks for the company.
Mutual funds and domestic insurance companies own more than 9.06 per cent stake in the company as of June 30, 2025. Ace stock market investors including Mukul Agrawal and Vijay Kedia are among the key shareholders of the company as of the shareholding pattern of the company June 2025 quarter. Mukul Mahavir Agrawal owned 4,00,000 lakh equity shares, or 3.12 per cent stake in the company valued at Rs 584.22 crore as of Q1FY25. Vijay Kedia, through Kedia Securities owned 1,30,000 equity shares, or 1.01 per cent stake, worth Rs 189.87 crore in Neuland Labs as of the recent quarter ended on June 30, 2025.
Despite a weak 1Q performance, the management remains confident of strong growth in FY26 with healthy profitability as they expect the launch of new CMS molecule in 2HFY26. Commercialisation of new CMS molecule and ramp-up of Cobenfy/KAR-XT (Xanomeline) can help sustain change in sales mix towards more profitable CMS segment, said said B&K Securities.
"Overall, we remain on positive on Neuland due to its strong ongoing capex programmes for future growth plus plans to acquire additional land at Unit 1 for future capacity expansion and healthy CMS pipeline with 98 molecules at various stages of development," it added with a 'buy' rating and a target price of Rs 16,000 on the stock.