Neuland Laboratories shares rise 17% on strong Q2 earnings

Shares of pharma firm Neuland Laboratories Ltd hit a record high today post Q2 earnings. Neuland Laboratories stock touched a fresh high of Rs 4750, rising 17.14% on BSE. Market capitalisation of the firm rose to Rs 5914.43 crore. Total 0.18 lakh shares changed hands amounting to a turnover of Rs 8.22 crore. Later, the stock ended 13.69% at Rs 4609 on BSE.  

Neuland Laboratories stock has delivered multibagger returns of 279% and 733% in three years and five years, respectively.   

The firm reported a 132.3% rise in consolidated net profit to Rs 89.1 crore for the September 2023 quarter against Rs 38.3 crore in the September 2022 quarter.   

Total income climbed 43.2% to Rs 420.8 crore in the September 2023 quarter against Rs 293.9 crore in the corresponding quarter of the previous fiscal.   

Operating profit margin in percentage terms rose to 33.4% in the last quarter against 23.6% in the September 2022 quarter. EBITDA or operating profit zoomed 102% to Rs 140.3 crore in Q2 against Rs 69.4 crore in the September 2022 quarter.  

Earnings per share rose to Rs 69.4 in the last quarter against Rs 29.9 in the September 2022 quarter.    

Neuland Laboratories stock has a one-year beta of 1 indicating average volatility during the period.   

The stock hit a 52-week low of Rs 1323.10 on February 2, 2023.   

In terms of technicals, the relative strength index (RSI) of Neuland Laboratories stands at 60, signaling it's trading neither in the overbought zone nor in the oversold zone. Neuland Laboratories shares stand higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.    

Sucheth Davuluri, Vice-Chairman and Chief Executive Officer of the company said, “We are pleased to report record quarterly revenue of Rs 421 crore. The YoY revenue growth of 43% driven by the CMS vertical is a culmination of the efforts we have put in over several years. The EBITDA margin of 33.4% therefore is a result of not only the revenue momentum but also a shift towards high margin business. We continue to have good visibility from both businesses and are focused on executing according to our strategic plan.” 

Neuland Laboratories is a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and custom manufacturing solutions services to customers located in around 80 countries.