How this small-cap pharma company is defying industry odds

After having their moment in the sun during the Covid pandemic, the domestic pharmaceutical industry, particularly active pharmaceutical ingredient or API manufacturers have seen their progress slowing to a crawl. The extraordinary growth of FY21 and FY22 has moderated in the following years due to demand normalisation and opening up of the Chinese economy that intensified price erosion. But we have come across a company that stands out- Neuland Laboratories -a small-cap API player that is head and shoulders above the rest. The company has been holding fort against industry headwinds, clocking an annual revenue and operating profit growth of 18.5 and 55.5 per cent, respectively, since FY21 against a broader decline in the performance of other major API peers. The impressive growth is reflected in the company's share as well, which has surged 2.5 times in the last year (closing price as of July 21, 2024). Capturing Neuland's phenomenal growth in numbers Its operating profit has grown over 5 times since FY20 FY24 FY23 FY22 FY21 FY20 Revenue (Rs crore) 1,559 1,191 951 937 763 EBIT (Rs crore) 403 219