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Neuland Laboratories Limited (NEULANDLAB) Fair Value & Analysis

Healthcare · IN · Market cap ₹244B (≈ $2.6B) · ISIN INE794A01010

What is Neuland Laboratories Limited really worth?

NL Neuland Laboratories Limited NEULANDLAB · NSE
Price₹22,660
Fair Value₹5,987
Upside−73.6%
Quality53/100

A solid business, but trading 279% above our fair value of ₹5,987.

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Strengths

Ranks above peers (8/13)

Risks

!Expensive Growth (revenue 5y +17.1 %/yr)
!Thin margins · 2.3% net margin
!Low debt · negative free cash flow
!Moderate moat 62/100
!Weak on dividend: 1 out of 100
Evidence: High Range ₹4,191 – ₹7,802

Fair value as of: Aug 23, 2026

From 17 valuation models · updated 13 days ago

Share price +13.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹7,802). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹4,191 to ₹7,802) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹23,661 ₹963.46 Fair Value ₹5,987 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ₹963.46 – ₹23,661 · fair‑value band ₹4,191 – ₹7,802 · the ₹22,660 price screens above the ₹5,987 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Neuland Laboratories Limited (NEULANDLAB) currently trades at ₹22,660, while our model-based Fair Value estimate is ₹5,987, implying the stock looks roughly 278.5% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Healthcare sector. Bull case: the Growth Earnings group reads highest at a median of ₹5,987 per share, and 0 of the 17 models we run sit above the ₹22,660 price. Bear case: the Asset-Based group reads lowest at ₹978.88, and 17 of the 17 models stay below the price. Evidence for this calculation is high.

Revenue grew 136.4% year over year. It earns a return on equity of 15.9%. The balance sheet holds a net cash position of ₹537M. The stock trades on a trailing P/E of 79.9. Fundamentals as of Aug 23, 2026

Our scenario range runs from ₹4,191 (bear case) to ₹7,802 (bull case); at ₹22,660, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 97% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −45% fair-value upside, at −74%, NEULANDLAB screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹122.02 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹206.43 to ₹9,976). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV ₹2,940 ₹3,432 ₹3,869 74
Owner Earnings ₹802.60 ₹1,428 ₹2,619 73
ROIC Compounder ₹3,417 ₹4,709 ₹6,458 71
All 17 models by family
DCF Models
Owner Earnings ₹802.60 ₹1,428 ₹2,619 73
Earnings-Based
Graham-Dodd ₹1,929 ₹9,976 ₹13,793 64
Lynch FV ₹2,727 ₹3,895 ₹5,064 61
PEG = 1.0 ₹2,727 ₹3,895 ₹5,064 57
EPV ₹2,940 ₹3,432 ₹3,869 74
Dividend Discount
Gordon GGM ₹115.43 ₹252.00 ₹424.00 65
DDM Multi-Stage ₹115.43 ₹206.43 ₹262.62 66
Multiples
P/E Multiple ₹4,681 ₹6,242 ₹7,802 63
P/S Multiple ₹3,617 ₹4,823 ₹6,029 58
P/B Multiple ₹3,617 ₹4,823 ₹6,029 55
EV/EBIT ₹4,949 ₹6,548 ₹8,147 66
EV/EBITDA ₹4,853 ₹6,420 ₹7,987 67
EV/Revenue ₹3,462 ₹4,882 ₹6,301 54
Asset-Based
NCAV (Graham) ₹730.51 ₹978.88 ₹1,461 54
Economic Profit
Residual Income ₹2,008 ₹2,837 ₹15,889 64
ROIC Compounder ₹3,417 ₹4,709 ₹6,458 71
Growth Earnings
Growth-Adj P/E ₹4,191 ₹5,987 ₹7,783 67

Widest divergence: Growth Earnings (₹5,987) versus Dividend Discount (₹206.43). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 79.9
P/S ratio 14.4 P/E × margin
EPS (TTM) ₹283.67 price ÷ EPS = P/E 79.9
Dividend yield 0.1% payout 5.0%
Net margin 18.0% FY2026
Return on equity 15.9% TTM
More key figures
Profitability
Return on assets (EBIT) 14.5% avg 5y
Operating margin 36.4% TTM
Growth
Revenue growth (YoY) +136% 3y avg +20.3%
EPS growth (YoY) +664%
Balance sheet & cash flow
Free cash flow −₹589M FY2026
Net cash ₹537M FY2026

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 54 · Market factors (momentum, volatility) 89

Profitability 62
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 24
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 1
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 94
Price trend over the last 3–12 months (market factor)
52W Momentum 97
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Neuland Laboratories Limited engages in the manufacture and sale of active pharmaceutical ingredients (APIs) in India, Europe, the United States, and internationally. It also provides custom manufacturing solutions, as well as peptide synthesis services. Neuland Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Neuland Laboratories Limited reported revenue of ₹20.2B in FY2026 versus ₹9.2B in FY2022, a compound +21.7%/yr. Reported net income was ₹3.6B in FY2026, compounding +54.5%/yr from FY2022. FY2022 was a trough year, so the rate overstates the trend.

Growth Quality 57/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹20.2B
Latest YoY
+41.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+20.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.1%
Avg. revenue growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.4%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+41.8% (41.7 + 0.1)
Revenue +21.7%/yr
FY22 ₹9.2B
FY23 ₹11.6B
FY24 ₹15.2B
FY25 ₹14.3B
FY26 ₹20.2B
Net income +54.5%/yr
FY22 ₹638M
FY23 ₹1.6B
FY24 ₹3.0B
FY25 ₹2.6B
FY26 ₹3.6B
Character of growth · EPS growth decomposed (2015-2026) +25.3 % p.a.
Revenue per share +10.2 %

of which total revenue +13.9 % · buybacks/dilution −3.3 %

EBIT margin +6.4 %
Tax rate +1.2 %
Residual (interest, one-offs) +5.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

NEULANDLAB screens 279% overvalued. Compare with Merck KGaA →

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Cite: Fair Value Calculator (2026). "Neuland Laboratories Limited Fair Value". https://www.fairvalue-calculator.com/stock/NEULANDLAB

Peer Group

Drug Manufacturers - Specialty & Generic · 608 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Above median
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 2% · Below median
Operating margin (TTM) 36% · Top 25%
Revenue growth 136% · Top 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.09× · Higher than median

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 79.9× · Pricier than 75% of peers
P/B 0.14× · Cheaper than 75% of peers
P/S (TTM) 0.43× · Cheaper than 75% of peers
EV/EBITDA 1.2× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 2
FUTURE100 · sector 22
PAST64 · sector 26
HEALTH96 · sector 97
DIVIDEND1 · sector 29

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

Stock Price Fair Value vs Fair Value
Merck KGaA MRK €140.25 €106.48 −24%
Takeda Pharmaceutical Company TAK $18.03 $11.11 −38%
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 −52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 −49%
Galderma Group GALD CHF 178.55 CHF 55.07 −69%
Haleon plc HLN $10.11 $7.64 −24%
Teva Pharmaceutical Industries Limited TEVA $36.05 $15.33 −57%
Sandoz Group SDZ CHF 70.66 CHF 39.21 −45%
Zoetis Inc ZTS $77.10 $104.88 +36%
Hansoh Pharmaceutical Group 3692 HK$35.12 HK$16.18 −54%

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Frequently asked questions

Is Neuland Laboratories Limited (NEULANDLAB) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of ₹5,987 versus a price of ₹22,660, about −74% upside (overvalued).
What is the fair value of NEULANDLAB?
Our model-based fair value for Neuland Laboratories Limited is ₹5,987 (as of Aug 23, 2026), built from audited fundamentals. The current price: ₹22,660.
What is the quality score of NEULANDLAB?
Neuland Laboratories Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of NEULANDLAB?
The net profit margin of Neuland Laboratories Limited is about 2.3%, meaning it keeps roughly 2.3% of revenue as net income. Based on the latest reported figures.
Does Neuland Laboratories Limited pay a dividend?
Neuland Laboratories Limited currently shows a dividend yield of about 0.06% relative to its recent price (as of Aug 23, 2026).
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