Review

GRANULES INDIA

CMP: Rs.114.25
Rec. Price Rs.116
Ticker : 532482
FV: Rs. 1 
52-Week H/L: Rs.123.35/71.75



We had recommended Granules India in vol. 35, no. 22, (dated Mar 25, 2019), when the scrip was trading at Rs 116. Our recommendation was based on factors like a ramp-up in formulations business and expanded API capacities. In Q3FY19, the consolidated net sales of the company stood at Rs 631.77 crore, up 53.8 per cent YoY from Rs 410.7 crore last year. The net profit for the company stood at Rs 60 crore, up 72.3 per cent from Rs 35 crore in Q3FY18. The EBITDA margin came in flat at 18 per cent, the same as last year. The company is confident of achieving 20 per cent revenue growth over the next two years and 25 per cent earnings CAGR, led by ANDA launches in the US, the commencement of oncology API supplies and improved performance by the Omnichem JV. Thus, we recommend a HOLD on the stock.