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.

22 Jan 2020

485.75

3.57%

BP Equities Granules India Ltd Q3FY20 Result Update

Buy: Granules India Ltd.

Target

BP Wealth

Granules (GIL) posted revenues of INR 7040mn with11.4% YoY increase, which was 5% below our estimate of INR 6,337mn. Revenue growth was mainly driven by Formulation (FD) (23% YoY growth) segment, led by new product launches and better pricing in existing products in the regulated market. EBITDA margin expanded by 524bps to 23.2% level was 388bps higher than our estimate due to 755 bps improvement in gross margin led by improved product mix. During the quarter the company charged one time exceptional item of INR 320mn provided for impairment in Biocause. Adj. to exceptional item, PAT came above our estimate at INR961mn (est INR798mn) driven by the operationally superior performance. R&D; spend was at 3.2% during Q3FY20, 101bps higher than last year same quarter. GIL's board approved buy back of 12.5mn (4.92% of equity capital) shares at INR200 per...

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

Granules India Ltd.

21 Jan 2020

485.75

3.57%

Another quarter of record high revenue/EBITDA margin

Buy: Granules India Ltd.

Target

Motilal Oswal

21 January 2020 GRAN is on a sustained earnings growth trajectory, led by higher business from forward integration, expanding its portfolio and reach. We raise our EPS estimate by 6.5%/7.3%/2.2% for FY20/21/22 to factor in (a) increased formulation business on account of ANDA launches in the US and (b) improving profitability due to forward integration and addition of higher- margin API molecules in the portfolio. Reiterating Growth was mainly driven by strength in the formulation dosage (FD) segment (+23% YoY; 54% of total sales). Gross margin expanded 750bp YoY to 50.7%, led by the higher share of formulation revenue. 20.2%), partly offset by higher other expenses (+160bp YoY) and staff cost (+70bp YoY). Strong EBITDA growth and a lower tax rate led to PAT growth of 56.4% YoY to INR944m (our estimate INR876m). GRAN reported one-time provision charge for impairment of INR320m related to the divestment of Granules Biocause Pharma, resulting in lower reported PAT of INR641m.

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

08 Nov 2019

485.75

3.57%

Initiating Coverage:Granules India

Buy: Granules India Ltd.

Target

Axis Direct

Granules India (GRAN) is a vertically integrated pharmaceutical company, headquartered in Hyderabad, India. GRAN is one of the largest manufacturers of key APIs like Paracetamol, Ibuprofen, Metformin, Guaifenesin and Methocarbamol for developed and emerging markets.

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

Granules India Ltd.

25 Oct 2019

485.75

3.57%

GRANULES INDIA

Accumulate: Granules India Ltd.

Recommendation Target

Geojit BNP Paribas

Q2FY20 revenue grew by 20% YoY driven by higher sales in Formulations (FD) (~34%YoY) segment and PFI (Pharmaceutical formulation Intermediaries )(~37%YoY). Granules to exit the JV business in Omnichem (India) and Biocause (China) citing lower capacity utilization and issues related to environment compliances in China. EBITDA registered a 37% growth YoY while margin improved by 260bps to 19.7% on account of better capacity utilisation while...

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

24 Oct 2019

485.75

3.57%

BP Equities Granules India Ltd Q2FY20 Result Update

Sell: Granules India Ltd.

BP Wealth

Granules (GIL) posted revenues of INR 6,995mn with 20.4% YoY increase, which was 10% higher than our estimate of INR 6,337mn. Revenue growth was mainly driven by PFIs (43% YoY growth) and Formulation (FD) (34% YoY growth) segments, led by new product launches and better pricing in existing products in the regulated market. EBITDA margin expanded by 322bps to 20.5% level was 159bps higher than our estimate due to 322 bps improvement in gross margin led by improved product mix and easing RM costs. Adj.PAT came above our estimate at INR958mn (est INR671mn) driven by the operationally superior performance. During the quarter, GIL sold its 50% stake in Granules Omnichem JV for ~INR1,099mn( 2.2x Book Value) to JV partner. As it does not delivering desired result with lower capacity utilisation and lower return on capital. GIL is also initiated to sell its stake in...

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

Granules India Ltd.

01 Aug 2019

485.75

3.57%

Granules India (1QFY20): Strong quarter. Maintain BUY

Buy: Granules India Ltd.

HDFC Securities

The mgmt is confident in achieving 20/25% revenue/PAT CAGR over the next few years driven by the ramp up in formulations and US sales by leveraging its expanded facilities. Increased efficiencies and oplev will enable EBITDA margin improvement (+200bps to 19% over FY19-21E). With limited capex requirements over the next few years, healthy FCF (Rs 1.5bn+ annually) will enable debt reduction (net debt at Rs 8.63bn now). We model 16/23/22% revenue/EBITDA/PAT CAGR over FY19-21E. At 8.0/6.5x FY20/21E EPS, Granules is trading at a steep discount to peers. Improving fundamentals and promoter pledge release will drive re-rating. We maintain BUY on Granules following yet another quarter of robust YoY growth driven by expanded capacities. EBITDA margin at 19.9% was 300bps above estimates, despite a 5% miss on revenue. Our TP is unchanged at Rs 170 (12x FY21E EPS).

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

01 Aug 2019

485.75

3.57%

BP Equities Granules India Ltd Q1FY20 Result Update

Buy: Granules India Ltd.

BP Wealth

Granules (GIL) posted revenues of INR 5,953mn with 31.3% YoY increase, which was slightly below our estimate of INR 6,235mn. Revenue growth was mainly driven by the Formulation (FD) (57.6% YoY growth) segments, led by gMethergine along with new product launches and better pricing in existing products in the regulated market. FD revenue contribution stood at 48% vs 40% in Q1FY19. EBITDA margin expanded by 391bps to 19.9% level, was 323bps higher than our estimate due to 490 bps improvement in gross margin led by improved product mix and easing RM costs. Adj. PAT came above our estimate at INR832mn (est INR650mn) supported by higher profits from the JVs (INR...

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

24 Jun 2019

485.75

3.57%

Pick of the Week:24 JUNE 2019

Buy: Granules India Ltd.

Axis Direct

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

13 May 2019, 10:12AM

485.75

3.57%

Granules India (4QFY19): Delivery continues. Maintain BUY

Buy: Granules India Ltd.

Target

HDFC Securities

As was indicated by the mgmt., Granules has achieved a significant ramp up in revenues (+35% YoY in FY19P) on the back of expanded capacities. While margins remained subdued over the year owing to raw material cost pressures and lack of US approvals for new API plants, better business mix and moderated RM prices will enable a recovery in margins, and the robust revenue growth will also reflect in improved EBITDA/earnings. Granules is out of its capex phase and healthy FCF will enable reduction in debt hereon. The co is also committed to relinquish its pledge (down 17% to 43% of promoter holding since Dec-18), which has been the key overhang on the stock. At 9.7/7.9x FY20/21E EPS, Granules is trading at a ~40% discount to peers. Improving return ratios and steady growth outlook merit a higher multiple. We maintain BUY on Granules following another strong quarter which was in-line with our estimates. Our TP is unchanged at Rs 170/sh (12x FY21E EPS).

Granules India Ltd. is trading below all available SMAs

Granules India Ltd.

13 May 2019

485.75

3.57%

GRANULES INDIA

Buy: Granules India Ltd.

Target

Geojit BNP Paribas

Q4FY19 revenue grew by 22% YoY driven by higher sales in Formulations (FD) (~47%YoY) segments and API (Active Pharmaceutical Ingredient)(~19%YoY). EBITDA registered a 83% growth YoY while margin declined by 200bps to 16% on account of higher other expenses. PAT is up by 123% YoY due to higher profit from the joint venture business (Rs19cr vs Rs3cr %YoY)....

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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