Granules India Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for GRANULES, BSE:532482 Granules India Ltd.

Granules India Ltd.

11 Sep 2020

479.65

2.27%

Commercial benefits from complex products underway

Buy: Granules India Ltd.

Target

Motilal Oswal

With the generic version of Focalin XR being approved, GRAN now has 30 ANDA approvals (28 final and 2 tentative). It is used for the treatment of Focalin XR and its generic equivalent had US sales of USD556m for 12- There are 5 companies having final approval for this product, other than GRAN. Accordingly, we expect price erosion of 7-10% with market share gradually building up to 10% over 12 months post the launch of the product. This could provide meaningful upside to GRANs ANDA-led Formulations GRAN has multiple growth levers, such as (a) the ANDA pipeline for US generics (with some products having limited competition opportunity), which should drive an increase in the share of formulations for developed markets, (b) enhanced reach for core molecules, and (c) reduced opex through backward integration.

Granules India Ltd. has an average target of 666.00 from 4 brokers.

Granules India Ltd.

20 Jul 2020

479.65

2.27%

BP Equities Granules India Ltd Q1FY21 Result Update

Buy: Granules India Ltd.

Recommendation Target

BP Wealth

Granules (GIL) posted revenues of INR 7,356mn with 23.6% YoY growth, which was ~6% above our estimate of INR 6929mn. Revenue growth was mainly driven by new product launches and an increase in market share of existing products. Gross margin improved (918bps YoY) due to higher formulation sales (52% of revenue vs 48% in Q1FY20). Subsequently, EBITDA margin expanded by 503bps to 25% level was 475bps higher than our estimate. EBITDA was partially impacted by one-off INR 280mn related to metformin recall (INR150mn) and COVID-19 related expenses (INR130mn). As per management EBITDA margin can be sustainable (~23% for FY21) as continued traction in the formulation business. GIL reported PAT of INR 1114mn, was above our estimate of INR 744mn driven by strong operational performance and lower tax rate (25.3% vs 32% in Q1FY20). Management expects to achieve 30% PAT growth in FY21 compared previous year and 25% for FY22 given the strong traction in base business along with new product launches in the US generics business. Post...

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

20 Jul 2020

479.65

2.27%

GRANULES INDIA

Buy: Granules India Ltd.

Target

Geojit BNP Paribas

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...

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

18 Jul 2020

479.65

2.27%

A quarter of record-high revenue/EBITDA/PAT

Buy: Granules India Ltd.

Target

Motilal Oswal

18 July 2020 Post delivering spectacular earnings growth (76% YoY) in FY20, Granules Indias (GRAN) posted strong revenue/EBITDA/PAT in 1QFY21. This was led by new launches in formulations (FDs) and better market penetration for intermediates (PFIs). We have raised our EPS estimate by 12%/6% for FY21/22E to factor in (a) the increased FD business on account of ANDA launches in the US, (b) addition of new molecules in the API segment, (c) increased traction in existing products, and (d) improving profitability due to backward integration. We value GRAN at 14x 12M forward earnings to arrive at price target of INR315. GRANs 1QFY21 sales were up 23.6% YoY to INR7.4b (v/s est. INR6.7b), led by 35% YoY growth in FDs (INR3.9b; 52% of sales) and 45% YoY growth in intermediates (INR1.4b; 19% of sales). API sales (29% of sales) declined moderately by 1% YoY, affecting overall growth to some extent. Adjusting for the same, Gross Margin (GM) for the company stood at 60.3% and expanded 990bp YoY, led by larger share of FDs and PFIs.

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

14 Jul 2020, 12:00AM

479.65

2.27%

BP Equities Pharmaceuticals Result Preview Q1FY21E

Buy: Granules India Ltd.

BP Wealth

Weak demand coupled with logistic/Supply chain issue lead to Muted Quarter We expect the companies under our pharmaceuticals coverage to report flattish revenue growth in Q1FY21 with 14.2% decline in profitability, on account of weak domestic business, negatively affected by COVID-19 lockdown. The US business is likely to remain moderate on account of reversal of benefits of stocking at the wholesale level in Q4FY20, lower sales from seasonal products (gTamiflu, speciality products of Sun Pharma) and weak demand for injectables (Aurobindo) due to sharp drop in patients visiting physicians and hospitals. However, companies with higher exports will benefit due to appreciation in the USD-INR by ~5% QoQ. With respect to domestic markets, the growth is likely to favour companies with a larger presence in chronic therapy despite lockdown led restrictions....

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

09 Jun 2020

479.65

2.27%

GRANULES INDIA

Buy: Granules India Ltd.

Target

Geojit BNP Paribas

For FY20, total revenues grew by 14% as the company launched 5 new products in the U.S which have gained traction. The share of revenues from FDs have grown from 44% in FY19 to...

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

04 Jun 2020

479.65

2.27%

BP Equities Granules India Ltd Q4FY20 Result Update

Sell: Granules India Ltd.

Recommendation Target

BP Wealth

Granules (GIL) posted revenues of INR 5,999mn with 2.2% YoY decline, which was ~14% below our estimate of INR 6945mn. Revenue growth was mainly impacted by the restriction imposed on export of Paracetamol API, PFI and FD's (which was uplifted for PFI & FD's in the month of April and for the API in the month of May) and disruption in logistics (revenue loss of INR600 to700mn). However, post lifting of restriction on the export of paracetamol, capacity utilization has improved significantly now. Gross margin improved (754bps YoY) due to higher formulation sales (57% of revenue vs 52% in Q4FY20). However, EBITDA margin expanded by barely 75bps to 16.7% level was 279bps lower than our estimate due to higher employee cost (up 43.8%) and one time INR 217 Mn impairment of...

Granules India Ltd. has an average target of 666.00 from 4 brokers.

Granules India Ltd.

03 Jun 2020

479.65

2.27%

Granules India

Buy: Granules India Ltd.

Anand Rathi

Outlook and Valuation. Its dominance in key APIs (paracetamol, ibuprofen, metformin) would help Granules emerge a prime beneficiary as the Covid-19 outbreak has led to a surge in demand for such drugs. Granules is likely to retain strong traction for the next couple of years driven by formulations and the healthy contribution from new capacities. We expect ~25%/~23% revenue/PAT CAGRs over FY20-22. At the CMP, the stock trades at 9x FY22e EPS of `20. Risks: 38% of promoters' holdings have been pledged;...

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

03 Feb 2020

479.65

2.27%

GRANULES INDIA

Buy: Granules India Ltd.

Recommendation Target

Geojit BNP Paribas

Q3FY20 revenue grew by 11% YoY driven by higher sales in Formulations (FD) (~23%YoY) segment and PFI (Pharmaceutical formulation Intermediaries )(~8%YoY). EBITDA registered a 44% growth YoY while margin improved by 300bps to 23% on account of better capacity utilisation which is also reflected in the PAT growth of 59% YoY. Recognized an impairment loss of Rs 32crs in Q3FY20 on sales of joint venture (JV) business Biocause (China) which will be offset in...

Granules India Ltd. has an average target of 666.00 from 4 brokers.

Granules India Ltd.

03 Feb 2020

479.65

2.27%

Ashika - Stock Picks - Granules India Ltd. - February 2020

Buy: Granules India Ltd.

Ashika Research

Granules India Ltd. (GIL) continue to deliver strong earnings in Q3FY20. Revenue growth was marginally below expectation while EBITDA improving further. Revenue grew by 11.4% YoY to Rs. 704 cr in Q3FY20 due to increased contribution from regulated markets along with higher contribution from Pharmaceutical Formulation Intermediates (PFI) (up 8% YoY) and Finished Dosage (FD) (up 23% YoY). Geographically, North America (up...

Granules India Ltd. has an average target of 666.00 from 4 brokers.

Is Granules India Ltd. worth buying?

862 Votes:

Buy 83.99%

Sell 10.21%

Hold 5.8%

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