Mukul Agrawal & Vijay Kedia stock that delivered 1644% returns in 2 Years

In recent months, the pharmaceutical industry has seen significant growth, with Neuland Laboratories Ltd. emerging as a standout performer. Having been undervalued at around Rs. 1,017 two years ago, the company has delivered an astonishing return of 1,655%.

Prominent ace investors such as Mukul Mahavir Agrawal and Vijay Kedia have acknowledged its potential, reinforcing Neuland’s status as a compelling investment opportunity in the market.

Stock Price Movements:

On December 5, 2024, the shares of Neuland Laboratories Limited traded at Rs.17,885.95 exhibiting a gain of around 1,655.15 percent compared to June 2022.

For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to ~Rs. 16.55 lakhs. The market capitalization now stands at approximately Rs. 22,953.51 crore

Company Overview:

Neuland Laboratories Limited is an India-based manufacturer of bulk drugs, specializing in active pharmaceutical ingredients (APIs) and offering end-to-end solutions for the pharmaceutical industry’s chemistry needs.

With a focus on generic drug substances and custom manufacturing solutions, the company serves both domestic and international markets, providing products like levetiracetam, mirtazapine, and ciprofloxacin.

Business Outlook:

The management predicts that FY25 revenues will remain steady compared to FY24, with growth expected to resume in FY26, driven by a robust order pipeline and high customer demand. Since the business operates with inherent fluctuations, evaluating yearly performance provides a more accurate view of growth potential than quarterly comparisons.

Capacity Building:

The new production block at Unit 3 is set to be completed by FY25, with commercial production slated to begin in FY26. Management highlights the need for flexibility and agility in adapting to evolving business conditions.

Product Development:

The CMS segment achieved Rs. 132 Cr in revenue, primarily supported by commercial segment molecules, with the positive trend likely to persist. The FDA’s recent approval of a Neuland-supplied NCE API has boosted the count of commercial APIs.

Strategic Focus:

Neuland seeks to maintain a balanced approach between its CMS and GDS businesses, prioritizing high-value molecules and operational efficiency. The company is also exploring new technologies, like peptides, to expand its product portfolio and attract larger pharmaceutical clients.

Market Trends:

Neuland has established itself as a specialized API solution provider with expertise in complex chemistry, collaborating with both innovators and generic pharmaceutical firms. Significant growth is expected in FY26, fueled by the completion of new manufacturing facilities and the commercial launch of molecules in the CMS segment.