Neuland Labs hits 20% upper circuit after solid Q2; stock at 10-month high

The company reported a record EBITDA margin of 23.6 per cent, led by shift in business mix towards higher margin products as well as various cost optimization initiatives.

Shares of Neuland Laboratories surged 20 per cent upper circuit to hit 10-month high of Rs 1,701.80 apiece in Thursday’s intra-day trade, in an otherwise weak market. The spike comes after the company reported record earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 23.6 per cent in the July-September quarter (Q2FY23).

For Q2FY23, margins, too, improved by 690 bps year-on-year (YoY), due to shift in business mix towards higher margin products as well as various cost optimization initiatives.

That apart, the company’s profit after tax jumped 88.6 per cent YoY to Rs 38.30 crore in Q2FY23,