Shares of Newland Laboratories Ltd. continued to rise during Wednesday’s trading session. Along with this, domestic brokerage firm B&K Securities has predicted further upside on the stock.
Dalal Street veterans like Vijay Kedia and Mukul Aggarwal have also invested in this pharma company. This stock has increased almost 62 times from the Covid low of Rs 260 to Rs 16,202.
Brokerage firm B&K Securities said
Brokerage firm B&K Securities said the approval from the USFDA for Cobenfi (xanomeline and trospium chloride/CarXT) for schizophrenia is a big positive for the company.
CAGR growth
Overall, sales have grown at 29 per cent CAGR during FY 22-24, while PAT has grown at 117 per cent CAGR during the same period. B&K Securities said in the note that the stellar performance was largely due to the ramp-up of the CMS division, which grew at 65 per cent CAGR during FY22-24.
Recently, some media reports reported that Newland Labs exported a total of $27 million in September 2024, an increase of 13 times month-on-month from $2 million in August. The news sent the stock soaring, sending it up nearly 40 percent in the past week.
However, the company said in an exchange filing that the export data does not necessarily reflect the company’s financial figures for a quarter. Actual shipment of product is as per customer’s requirement. Global brokerage Goldman Sachs, among other analysts, has given it a ‘buy’ rating, but its target has already been met.
Newland Laboratories has not yet filed its shareholding pattern for the September 2024 quarter. As of the June quarter, Mukul Mahavir Aggarwal held 4,00,000 equity shares or 3.12 per cent stake in the company, while Vijay Kedia’s Kedia Securities held 1,40,000 equity shares or 1.09 per cent stake in the company.