Vijay Kedia & Mukul Agrawal’s Portfolio Multibagger Pharma Stock Falls Over 14 Per Cent In Past 1 Hour; Here’s Why

The company has a market cap of over Rs 17,000 crore with a PE of 55x, an ROE of 27 per cent and an ROCE of 33 per cent.

On Wednesday, one of the Top Losers on BSE & NSE, shares of this multibagger pharma company plunged over 14 per cent to Rs 13,500 per share from its previous closing of Rs 15,858.20 per share. The stock’s 52-week high is Rs 16,524.95 per share and its 52-week low is Rs 3,930 per share. The shares of the company saw a spurt in volume by more than 10 times.

Two ace investors, Vijay Kedia and Mukul Agrawal owns 1.01 per cent and 3.12 per cent stake in the company, respectively as of September 2024.

The stock name is Neuland Laboratories Ltd.

The sudden fall in the stock price was due to company announces its Quarterly Results (Q2FY25) and half-yearly results (H1FY25). Here are the details: Quarterly Results: Total income decreased by 25.1 per cent to Rs 315.2 crore, EBITDA decreased by 53.2 per cent to Rs 65.7 crore and PAT decreased by 64.1 per cent to Rs 32 crore in Q2FY25 compared to Q2FY24.

Quarterly Results: Total income decreased by 25.1 per cent to Rs 315.2 crore, EBITDA decreased by 53.2 per cent to Rs 65.7 crore and PAT decreased by 64.1 per cent to Rs 32 crore in Q2FY25 compared to Q2FY24.

Half-Yearly Results: Total income decreased by 3.3 per cent to Rs 759.6 crore, EBITDA decreased by 18.9 per cent to Rs 194.3 crore and PAT decreased by 13.9 per cent to Rs 130.3 crore in H1FY25 compared to H1FY24.

Commenting on the performance Mr Sucheth Davuluri, Vice-Chairman and Chief Executive Officer of the Company said, “The numbers of this quarter are subpar relative to how the business has been performing over the last few quarters. However, they are in line with our commentary right at the beginning of the year as to how we see FY25 panning out. The inherent uneven nature of our business means that annual progression is a better indicator of the company’s prospects than quarterly performance. We continue to make progress on our strategic plans and are enthusiastic about sustainable long-term growth driven by customer acquisitions, deepening capabilities, agile capacity expansion and optimization of processes.”

In addition, Mr. Saharsh Davuluri, Vice Chairman and Managing Director, Neuland Laboratories added “The revenues this quarter were driven by a few key molecules on the commercial CMS and GDS specialty side. Completion of additional manufacturing facilities in this year coupled with anticipated commercial launch of molecules on the CMS side gives us the confidence of achieving high growth in FY26 and beyond. We believe that the environment remains favourable for us in the medium to long term as indicated by customer interest and addition of early-stage projects.”

About the Company

Neuland Labs, a pioneer in API manufacturing, has been serving customers in nearly 80 countries for over four decades. With a strong focus on quality and compliance, they have developed and manufactured over 300 processes and 100 APIs. Their commitment to regulatory excellence is evident in their 978+ regulatory filings across major markets like the US, EU, and others. Their manufacturing facilities, inspected and approved by leading regulatory agencies such as the US FDA, adhere to stringent cGMP standards, ensuring product quality and safety. This robust track record, backed by certifications from various regulatory bodies worldwide, solidifies Neuland Labs' position as a trusted partner in the pharmaceutical industry.

The company has a market cap of over Rs 17,000 crore with a PE of 55x, an ROE of 27 per cent and an ROCE of 33 per cent. The stock gave multibagger returns of 250 per cent in 1 year, 720 per cent in 3 years and a whopping 2,700 per cent in 5 years.

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Disclaimer: The article is for informational purposes only and not investment advice.