Shares of this pharmaceutical company fell around 11 percent in Monday’s trading session as Q4FY24 results missed expectations. The company reported a decline in net profits by 20 percent.
With a market capitalization of Rs. 8,173 crores, the shares of Neuland Laboratories Ltd started Monday’s trading session on a lower note at Rs. 6,642 compared to its previous close of Rs. 7,139.70. During the trading session, the shares hit a low of Rs. 6,088, losing 11 percent and are currently trading at Rs. 6,430 apiece.
Such a negative movement in the share price was observed after the company’s Q4FY24 results missed expectations. The revenue decreased by 2 percent from Rs. 392.82 crores during the December quarter to Rs. 385 crores in the March quarter. On the other hand, the net profits declined by 17 percent from Rs. 81.39 crores to Rs. 67.56 crores during the same period.
Comparing these metrics on a YoY basis, the revenue fell by 5 percent from Rs. 407 crores during Q4FY23 to Rs. 385 crores in Q4FY24. In addition, the net profits slumped by 20 percent from Rs. 84.54 crores to Rs. 67.56 crores during the same timeframe.
Furthermore, the Board of Directors of the pharma company have recommended payment of a final dividend of Rs. 14, i.e., 140 percent per equity share on a face value of Rs.10 each, for the financial year 2023-24.
In Q4FY24, the company’s revenue originated from diverse business sources. Custom Manufacturing Solutions (CMS) contributes 45 percent to the revenue, while 26 percent comes from the Prime segment. The Specialty segment accounts for 24 percent of the revenue, with the remaining 4 percent generated from other segments.
According to the BSE data, Ace Investor Mr Vijay Kedia entered the stock in December 2019 via Kedia Securities Private Limited. During the recent quarter, the ace investor has decreased his stake by 0.13 percent from 1.25 percent during the December quarter to 1.09 percent during the March quarter and the current holding value of his investment amounts to Rs. 87.4 crores.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.84 percent and a return on capital employed (RoCE) of 20.58 percent for the period spanning FY22-23. Moreover, during FY22-23 the net profit margin was at 13.73 percent.
Headquartered in Hyderabad, Neuland Laboratories was incorporated in 1984. The company is engaged in the manufacturing and selling of bulk drugs, serving both domestic and international markets. The company specializes in APIs (Active Pharmaceutical Ingredients) and offers services such as contract research, contract manufacturing, and generic APIs.
Written By Vaibhav Patil
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