Geojit recommended is bullish on Granules India recommended buy rating on the stock with a target price of Rs 327 in its research report dated July 20, 2020.
Geojit's research report on Granules India
Granules achieved its highest ever quarterly revenue of Rs.736cr during Q1FY21 with a YoY growth of 24%. The Finished Dosages segment grew by 35% during the quarter as the company successfully launched Colchicine tablets and Butalbital APAP caffeine tablets in the U.S The company reduced its Promoter pledge percentage from 37.6% to 8.7% through the recent buyback process. We expect net profit to grow at a CAGR of 22% over FY20-FY22E on the back of new launches, entry into new geographies as well as its cost optimization measures.
Outlook
Hence we value Granules at 15x FY22E EPS and reiterate a "Buy" rating, with a target price of Rs.327.
For all recommendations report, click here
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