I would also tend to believe that Neuland is one company which has high promise but the delivery fall far short of expectations. This obviously has to do with the competitive Generic industry in which they operate. Even the CSM segment is not able to scale up significantly over the last many quarters. The molecules that they are working on are fairly challenging and complex and taking them to the finish line (themselves and for the partner) is always going to be challenging.
In nutshell, I believe given the industry that they are in and the complexities of FDA/Technical etc and their small size, it is not going to become a secular growth story for some time. even if they do well in 1-2 quarter, business may revert back to mean margins and growth thus disappointing investors. The only way to play this can be buying at fairly low valuations and then hoping for management to deliver numbers for 1-2 quarter and moving out after making some trading profits.
Regards,
NIkhil
Disc: Not invested but following.
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