Brokerage house Firstcall Research is bullish on Neuland Laboratories and has recommended buy rating on the stock with a target price of Rs 306 in its research report dated March 07, 2014.
Firstcall Research report on Neuland Laboratories
During the Nine month ended 31st Dec 2013, Neuland Laboratories registered its Net sales up by 1.48 percent at Rs. 3586.84 million against Rs. 3534.48 million over the corresponding period of previous year. In the same nine month period of 1st April to 31st Dec 2013, Growth in PAT ramps up by 91.51 percent and stood at Rs. 180.77 million as against Rs 94.39 million in the nine month period of 1st April to 31st Dec 2012.
Neuland Laboratories Ltd continued to deliver on its commitment to increase profitability and focus on growing higher margin businesses such as its contract manufacturing services, which will serve Neuland in both the medium and longer-term. These proceeds are expected to provide resources for investments intended to achieve its strategic business plan and spur additional profitable growth. The company's strategy is of strengthening their product mix as gradually ramp up their higher-margin contract manufacturing business has enabled to achieve greater profitability year-over-year. We expect these positive trends to continue as work to accelerate revenue growth in the coming quarters. Over FY2012-15E, we expect the company to post a CAGR of 6 percent and 22 percent in its revenue and operating profit respectively. Hence, we recommend 'BUY' for 'Neuland Laboratories Ltd' with a target price of Rs 306 on the stock," says Firstcall Research Report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.