Fundamental Analysis

GRANULES INDIA 

Ticker : 532482 
BUY : Rs 226.40 
Target : Rs 250

Granules India Limited is a pharmaceutical company with a presence across the pharmaceutical manufacturing value chain, including active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediaries (PFIs) and finished dosages (FDs). On the consolidated financial front, in Q4FY20, the company reported a total income of Rs 622.40 crore, which is an increase of around 1.17 per cent as compared to the total income of Rs 615.19 crore in the same period for the previous fiscal year. Operating profit increased by 23.1 per cent to Rs 122.47 crore in Q4FY20 from Rs 99.49 crore in Q4FY19. The company gained a net profit of Rs 92.34 crore for Q4FY20, increasing by 44.19 per cent from Rs 64.03 crore gained in Q4FY19. Its dominance in key APIs (Paracetamol, Ibuprofen, Metformin) would help Granules India Ltd emerge as a prime beneficiary since the COVID-19 outbreak has led to a surge in demand for such drugs. Hence, we recommend a BUY.