Reviews

GRANULES INDIA LTD.

Ticker : 532482
FV: Rs. 1 
52-Week H/L: Rs. 123.35/76.60



We had recommended Granules India in volume no. 35, issue no.22 (dated Mar 25, 2019), when the scrip was trading at Rs 116. Our recommendation was based on the company’s formulations business, which was set to witness a ramp-up and the expanded API capacities were to witness higher realisations post regulatory approvals. Granules India is a vertically integrated pharmaceutical company that manufactures active pharmaceutical ingredients, pharmaceutical formulation intermediates and finished dosages. On the financial front, the company reported robust growth overall, with net sales up 21 per cent YoY in Q4FY19 at Rs 613.32 crore. The PBIDT was up 123 per cent YoY to Rs 97.60 crore in Q4FY19. The PAT witnessed a growth of 162 per cent YoY to Rs. 45.04 crore. Of recent, Granules India's wholly-owned foreign subsidiary, Granules Pharmaceuticals, Inc has received approval from USFDA for methylphenidate hydrochloride extended release capsules. We would recommend a HOLD.