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Check Before You Invest : Granules India Ltd

BSE: 532482 NSE: GRANULES ISIN: INE101D01020
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Granules India Ltd belong to?
Granules India Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Granules India Ltd a good quality company?
Granules India Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Granules India Ltd undervalued or overvalued?
Granules India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Granules India Ltd a good buy now?
Granules India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Granules India Ltd?
Granules India Ltd revenue growth is -19.3% for FY-2025 , which is below its 5 year CAGR of 5.6% , indicating slower growth.
Q.2 Gross Profit margin of Granules India Ltd?
Granules India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.7% for FY-2025 , which is below its 5 year median of 19.9% , indicating decreasing margins.
Q.3 Operating Profit Margin of Granules India Ltd?
Granules India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.71% for FY-2025 , which is below its 5 year median of 21.45% indicating decreasing margins.
Q.4 Net Profit Margin of Granules India Ltd?
Granules India Ltd Net Profit Margin is 10.54% for FY-2025 , is below with its 5 year median of 11.94%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 17.7 19.9
Operating Profit Margin 18.71 21.45
Net Profit Margin 10.54 11.94
Q.5 Return on Asset of Granules India Ltd?
Granules India Ltd Return on Asset is 6.29%, which is below its 5 year historical median of 9.6%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Granules India Ltd?
Granules India Ltd Return on equity is 9.85% for FY-2025 , which is below its historical median of 16.55%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Granules India Ltd?
Granules India Ltd Return on capital employed is 11.7% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Granules India Ltd?
Granules India Ltd Cash conversion cycle is 155 days, above its historical median of 110 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.6 0.8
ROE 9.85 16.55
ROCE 11.7 17.06
Cash Conversion Cycle 155 days 110 days
Q.9 Debt to Equity ratio of Granules India Ltd?
Granules India Ltd Debt-to-Equity ratio is 0.24 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Granules India Ltd?
Granules India Ltd Debt to cash flow from operations is 0.98 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Granules India Ltd?
Promoters hold 38.02% of the Granules India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Granules India Ltd vs industry peers?
Granules India Ltd revenue CAGR is 5.58% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,030.2 137.1
Gross Profit 536.3 15.1
Operating Profit 565 16
Net Profit 319 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.6 0.8
ROE 9.85 8.91
ROCE 11.7 11.59
Cash Conversion Cycle (days) 155.19 76

Valuation & price assessment

Q.1 Stock return of Granules India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 17.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 17.8% 14.9% 30.5% 40%
Q.3 Valuation ratios of Granules India Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 40.75 15.03 40.28
Price to Book 4.07 3.98 2.77
Price to Sales 4.93 3.08 2.65
EV to EBITDA 23.01 13.74 15.67

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