Mukul Agrawal portfolio pharmaceutical stock surges 10% in weak market

Business Standard

a day ago

Neuland Laboratories share price
Shares of Neuland Laboratories rallied 10 per cent to ₹13,500 on the BSE in Monday's intra-day trade in an otherwise subdued market. In the past two trading days, the stock price of the pharmaceutical company has surged 13 per cent. In comparison, the BSE Sensex was down 0.25 per cent at 82,291 at 10:31 AM.
However, thus far in the calendar year 2025, Neuland has underperformed the market by falling 6 per cent, as against 4.8 per cent rise in the benchmark index. The stock had hit a record high of ₹18,089.55 on December 4, 2024.
Mukul Mahavir Agrawal holds 3.12 per cent stake in Neuland
Investor Mukul Mahavir Agrawal held 400,000 equity shares or 3.12 per cent stake in Neuland at the end of March 2025 quarter, the shareholding pattern data shows.
Crisil Ratings reaffirms credit rating assigned to Neuland
On June 20, 2025, Crisil Ratings reaffirmed its 'Crisil A+/Stable/Crisil A1' ratings on the bank loan facilities of Neuland Laboratories.
The rating agency in its rationale said that the ratings continue to reflect the established market position of Neuland in the active pharmaceutical ingredient (API) segment, its established clientele, healthy business performance, product and geographical diversification, and comfortable financial risk profile. These strengths are partially offset by susceptibility to fluctuations in raw material prices, intense competition and regulatory risks, moderate working capital requirement and vulnerability of operating margin to fluctuations in foreign exchange rates, Crisil Ratings said.
The custom manufacturing services (CMS) segment is set to recover in fiscal 2026 with one molecule already commercialised and one more expected to be commercialised during the fiscal. The segmental revenue will improve with more projects expected under development. With the incremental contribution from the CMS segment and healthy continuing demand from the API segment, the operating margin is expected to recover over the medium term, Crisil Ratings said.
Neuland Labs - Outlook
According to the management, the revenue contribution from the CMS segment will be 55 per cent - 60 per cent over the next three-to-four years. The management highlighted that since FY25 is a year of consolidation, the company's performance moderated while maintaining flattish revenue growth on a year-on-year basis. However, management is confident upon the revenue growth trajectory in FY26 on account of the completion of additional manufacturing facilities, coupled with the scaling up of commercial molecules in the CMS segment.
'We entered FY 2025-26 with renewed momentum, underscored by the completion of additional manufacturing facilities, the anticipated commercial launch of new CMS molecules, and increasing customer interest across both generic drug substances (GDS) and CMS portfolios. These developments, along with our continued focus on operational excellence and long-term capability building, strengthen our confidence in delivering sustainable growth,' Neuland said in its FY25 annual report.
The diversification away from China by Western pharmaceutical companies as they look to rebalance their supply chains is also creating fresh opportunities. Neuland said, the company is well positioned to benefit from this trend, supported by a strong reputation, high-quality infrastructure, and regulatory credibility.
While tariff related developments are being closely monitored, the management does not foresee a material impact, as the company's primary competitors are based outside the US, and its position as a preferred supplier to many customers helps mitigate potential disruptions.
About Neuland Laboratories
Neuland is a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and custom manufacturing solutions services to customers located in around 80 countries.
Regulated markets contributed more than 90 per cent to the group's revenue in fiscal 2025, while semi-regulated markets accounted for the rest. Geography-wise, Europe is the largest contributor (45 per cent of sales in fiscal 2025), followed by the US (41 per cent).