iStockRelated
Motilal Oswal has buy call on Ltd. with a target price of Rs 420. The current market price of Granules India Ltd. is Rs 343.4.
Granules India Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 8913.82 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 802.59 Crore, down -6.78 % from last quarter Total Income of Rs 860.92 Crore and up 28.95 % from last year same quarter Total Income of Rs 622.40 Crore. Company reported net profit after tax of Rs 127.57 Crore in latest quarter.
Investment Rationale
The brokerage lowers FY22E/FY23E EPS estimate by 11%/10% to factor in a price increase/reduced availability of KSM like para-aminophenol (PAP)/acetic anhydride and lower operating leverage. We value GRAN at 15x 12-months forward earnings to arrive at our TP of INR420. It remains positive due to its: a) healthy ANDA pipeline for the US market, b) increasing share in the FD/PFI segment, and c) geographic expansion.
Promoter/FII Holdings
Promoters held 42 per cent stake in the company as of March 31, 2021, while FIIs held 23.1 per cent, DIIs 1.5 per cent and public and others 33.4 per cent.
Granules India Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 8913.82 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 802.59 Crore, down -6.78 % from last quarter Total Income of Rs 860.92 Crore and up 28.95 % from last year same quarter Total Income of Rs 622.40 Crore. Company reported net profit after tax of Rs 127.57 Crore in latest quarter.
Investment Rationale
The brokerage lowers FY22E/FY23E EPS estimate by 11%/10% to factor in a price increase/reduced availability of KSM like para-aminophenol (PAP)/acetic anhydride and lower operating leverage. We value GRAN at 15x 12-months forward earnings to arrive at our TP of INR420. It remains positive due to its: a) healthy ANDA pipeline for the US market, b) increasing share in the FD/PFI segment, and c) geographic expansion.
Promoter/FII Holdings
Promoters held 42 per cent stake in the company as of March 31, 2021, while FIIs held 23.1 per cent, DIIs 1.5 per cent and public and others 33.4 per cent.
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