Neuland Laboratories Limited - Transformation towards niche APIs?

Given Q 2 results will be out soon, a good sign that thread is quite and noises have settled for all momentum chasing, a quick recap of Neuland and Market perspectives of it

Neuland has seen four peaks and troughs for last 12 years, with median PE of 30( we are there about currently), reasons for optimism and pessimism are similar to current cycle - 1-2 Qtrs of underperformance and followed by good performance.

Let’s look at long term CAGR

Stock price CAGR currently lags profit growth for all time periods. Esp TTM. If anything valuations are at fair range of spectrum.

Things to watch out for

  • Revenue - need to do 250cr+ range to get back to TTM growth
  • Margins - 15%+ has been the case in Q2 and Q3 21, Q4 and Q1 has been sub 12% --need to see it go back to 15%+
  • YoY - Q2 21 has been one of the highest performance, YoY performance would not be easy to beat on both revenue and margins, QoQ beat and good H2 commentary will be required to stabilize
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