Review

GRANULES INDIA
Ticker : 532482
FV: Rs.1
52-Week H/L : Rs.123.35/79



We had recommended Granules India Ltd. in volume no. 35, issue no. 22 (dated March 25, 2019), when the scrip was trading at Rs. 116. Granules India is a pharmaceutical company manufacturing active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediaries (PFIs) and finished dosages (FDs) along with pharmaceutical products. Considering consolidated financials for Q1FY20, the company’s revenue grew by 31 per cent to Rs. 595.27 crore from Rs. 453.23 crore in Q1FY19. PBT increased significantly by 56 per cent and was Rs. 110.42 crore in Q1FY20 as against Rs. 70.90 crore in Q1FY19. For Q1FY20, the company gained a net profit of Rs. 83.24 crore, which is a rise of 61 per cent compared to the net profit of Rs.51.79 crore in Q1FY19. In this quarter, Granules India has filed three ANDAs and has received approvals from the USFDA for two ANDAs which were filed earlier. Hence, we recommend a HOLD.