This pharma stock more than doubled in 2021

The year 2021 has been a rather volatile year when we consider the fact that the majority of the risks have been factored in by the markets.  

The valuations are stretched for the overall markets and the time for P/E expansion may be over at least in the short-term and it is expected that earnings expansion should support the markets.

While Sensex is up by nearly 5 per cent on a YTD basis, Neuland Laboratories, the Rs 3,000 crore + market cap pharma company has more-than-doubled on a YTD basis. BSE Healthcare index in the meantime is more or less flat on a YTD basis. 

Neuland Laboratories, established in 1984 and headquartered in Hyderabad is a leading manufacturer of active pharmaceutical ingredients (APIs). The company is witnessing some decent growth in profits (net profits as well as operating profits) QoQ and this earnings momentum is what is supporting the stock prices for Neuland Laboratories. 

The company's strength lies in the manufacturing of APIs and advance intermediates from its USFDA approved facilities. 

The stock has delivered an impressive 36 per cent CAGR returns in 10 years, 28 per cent in five years, 47 per cent in three years, and in one year, the stock is up by almost 642 per cent. 

In today's trade, Neuland Laboratories is up by over 1.30 per cent, trading at Rs 2,476 per share while Sensex is up by nearly 1 per cent, trading above the crucial 50,000 levels.