How this pharma company is thriving despite industry headwinds

Published: 07th Aug 2024

By: Value Research

A mighty small cap

Major pharma API manufacturers have seen their growth moderate after the Covid peak, except for Neuland Laboratories that has been resilient against industry downturns.

Exemplary gains

Since FY21, its annual revenue & operating profit have grown remarkably by 18% and 55%, respectively, against sluggish industry growth. Its stock, too, skyrocketed 2.5x in the last year!

Thank the game changing pivot in FY21

While generic API makers were pressured due to price erosion & demand slowdown post Covid, Neuland’s solid growth came from its pivot to custom manufacturing services (CMS).

Solid push to profitability

Under CMS, it is producing high-margin complex APIs uniquely tailored for each client. This has boosted its operating profit margins from 10% in FY20 to 26% in FY24!

What’s in store ahead for Neuland?

It is among the fastest-growing Indian pharma companies, but can its growth hold up? What are the risks that plague its prospects? Head to our story & find out. Click the link below.

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