As per PPT – https://www.bseindia.com/xml-data/corpfiling/AttachLive/f0ce5213-df5c-4d98-a57e-6c840b6364ab.pdf

Slide 17 – targeting to achieve ~15% revenue growth with sustained improvement in profits.
On congervative if we consider 15% revenue growth with same profit margin of 22%, EPS of FY 25 is 127.6, with that EPS forward PE comes to 28. Seems cheap with PI quality.

Disc: Invested and views are biased.

ESOP Filing Company has Employee Stock Options (“Options”) plan with a exercise price of Rs.1450/share, 1/3rd vesting every year. Interesting to see which level of employees this is being offered to. My understanding is that Employees will find this interesting/profitable if the price remains above (hopefully significantly) Rs.1450 (during each exercise period i.e. May 2025/26/27), since they have to pay the exercise price.

Maybe a indicator of mgmt expectation of company performance (indirectly translating to stock price) in coming years.

Link : ESOP Announcement

Key takeaways from Q4FY24 Concall from own notes and screener:
Financial Performance:

• Total income for FY24 was Rs. 1,571.1 crores, an increase of 30.8% from FY23.
• EBITDA for FY24 stood at Rs. 474.5 crores with a margin of 13.2%, an increase of 6.8% over FY23.
• Total income for Q4FY24 was Rs. 390.4 crores, with EBITDA at Rs. 112.2 crores and a margin of 28.7%.
• Gross margin was 58.8% in Q4FY24.
• Profit after tax was Rs. 67.6 crores in Q4FY24.

Operational Efficiency and Cost Optimization:

• Continuous work on optimizing costs and processes for long-term sustainability.
• Reduction of debt by Rs. 39.4 crores, leading to a net debt position of negative Rs. 32.6 crores.
• Working capital cycle reduced to 122 days at the end of March’24.

Capex and Investments:

• Invested Rs. 143.7 crores in capex during FY24.
• Continued investment in upgrading facilities to enhance business resilience.

Business Trends and Outlook:

• CMS business contributed close to 50% of revenues in FY24.
• Anticipating a surge in new projects in the next 12 months.
• Expecting a normalization of revenue growth and margin in FY25.
• Optimistic about 20% CAGR growth beyond FY25 based on current visibility of projects and portfolio products.

Customer and Industry Dynamics:

• Seeing a surge in RFI and RFP activities from customers.
• Customers considering Neuland differently due to track record and quality culture.
• Seeing increased interest from generic customers in the API space.
• Customers making strategic decisions on outsourcing based on various factors including geodiversity.

Biosecure Act and Industry Changes:

• Monitoring the developments around the Biosecure Act.
• Potential opportunities arising from the Act in terms of customer inquiries and RFPs.
• Preparedness to capitalize on opportunities and overcome challenges in the evolving regulatory landscape.

The concall was led by Saharsh and Sucheth (sons of the founder). After attending the last few concalls, I have noted that they are smart, realistic and down-to-earth management. They paint a very realistic picture of the future growth of the company and are very honest about what the company can and cannot do. They stayed away from speculation (especially around the Biosecure Act) and gave very practical answers based on their internal research and company’s expectations

Disc: Invested since much lower levels and plan to hold due to honesty and integrity of management.

Agree with you completely. It’s a very good bet on the Indian space.
One doubt though, how do you evaluate the Indonesian business and its scope in the future? It’s clearly the one that’s dragging the business down. Its revival can lead to RBA finally breaking out