Neuland Labs. (NEULANDLAB)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I begin with Graham's question: what am I getting for ₹23,320 per share? Neuland Labs is a pharmaceutical company with a ₹29,919 Cr market cap. The latest quarter showed sales of ₹440 Cr and net profit of ₹41 Cr. Recent growth is spectacular: sales up 116.25% and profit up 975.04%. That excites momentum investors, and a Piotroski F-Score of 7/9 plus Altman Z-Score of 6.42 suggests the balance sheet is not fragile. Debt/equity of 0.16 is comfortable. ROCE of 18.66% is respectable, though ROE of 11.75% is only moderate. Promoter holding at 32.63% gives some alignment. But I must reconcile price with value. Book value is ₹1,461.02, so P/B is 15.96. Graham Number is ₹1,934.52, implying a margin of safety of -562.95%—the price is many times my cautious asset-based valuation. The DCF intrinsic value given is ₹27.57, a stark warning if I trust that calculation. P/E is 60.24, EV/EBITDA 15.65, dividend yield only 0.15%, and free cash flow is just ₹19 Cr against a ₹29,919 Cr market cap. Five-year revenue CAGR is 14.12%, so the explosive 116.25% sales growth may be an outlier, not a durable trend. Price is near the 52-week high of ₹24,235.05, far above the low of ₹11,500. So I call it a Fast Grower—but not a bargain. The business has momentum, low debt, and decent returns. Yet the valuation demands extraordinary future cash flows. I would wait for a much wider margin of safety or evidence that FCF and ROE can catch up with the price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer