Nuvama Institutional Equities has maintained its buy call on Neuland Laboratories Ltd and raised the target price to ₹22,130 per share, implying an upside potential of around 24.5% from the current market price of ₹17,767.00.
The brokerage said the company delivered a stellar Q2FY26 performance, beating its revenue, EBITDA, and PAT estimates by 18%, 46%, and 59%, respectively. EBITDA margin came in at a strong 64.3%, which was 583 basis points above estimates, reflecting solid operational execution.
Nuvama attributed the strong results to broad-based growth across segments, led by high-margin Custom Manufacturing Solutions (CMS) and Specialty Generic Drug Substances (GDS) businesses. It added that the company’s product mix improvement contributed significantly to the margin expansion.
The management also guided for the addition of another product in the CMS business, which Nuvama believes will further strengthen Neuland’s growth visibility and profitability in the coming quarters.
Disclaimer: The above article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice or recommendations to buy or sell any securities.
