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Granules India Ltd Stock Analysis

Mid Cap
Evaluated by 3779 users | BSE: 532482 | NSE: GRANULES |
Pharmaceuticals & Drugs

Granules India Limited is a large-scale vertically integrated Company founded in 1991 manufacturing Active Pharmaceutical Ingredient (API), Pharmaceutical Formulation Intermediate (PFI) and Finished Dosage (FD). The Company over the years has created a strong...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Granules India Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21
Return on Capital Employed 10.41%9.23%15.94%15.51%13.68%11.85%8.3%7.39%13.34%20.14%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5636801,0021,2151,3281,3491,6472,0982,3103,135
Y-o-Y Gr. Rt.-20.8%47.4%21.3%9.3%1.6%22%27.4%10.1%35.7%
Adjusted EPS (Rs.) 1.361.53.954.685.576.395.36.0112.6822.56
Y-o-Y Gr. Rt.-10.3%163.3%18.5%19%14.7%-17.1%13.4%111%77.9%
Book Value per Share (Rs.) 12.1913.2616.8520.7529.3338.5650.1455.7170.9186.9
Adjusted Net Profit 27.330.280.295.6121146135153322559
Net Op. Cash Flow (Rs. Cr.) 39.550.99413514419024227495375
Debt to Cash Flow from Ops 4.134.463.513.054.453.4540.84.371.82.27
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Granules India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 21%18.8%23.9%35.7%
Adjusted EPS 36.6%32.3%62.1%77.9%
Book Value per Share 24.424.320.122.6
Share Price 45.4% 22.1% 56.8% 25.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21
Return on Equity (%) 11.6811.7326.0524.8322.1318.8812.4411.3119.9328.12
Operating Profit Margin (%) 12.911.6416.2917.4420.3222.3317.8315.8521.427.75
Net Profit Margin (%) 4.844.4587.879.0910.838.177.2813.9617.82
Debt to Equity 0.670.850.970.971.010.740.770.70.490.39
Working Capital Days 9910695110168241278237195169
Cash Conversion Cycle 40392934781151171149874
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 42.04%
Institutions 21.21%
Non-Institutions 36.76%
Pledged *43.4043.4036.9930.2937.628.648.648.648.646.92
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Granules India Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Granules India Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Granules India Ltd's performance infers:

Granules India Ltd earnings have grown by 32.3%, whereas share price has appreciated 22.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Granules India Ltd share prices over the last 10 years. Here is what we found out:

Granules India Ltd share price has appreciated 45.9% annually over the past ten years.

Granules India Limited is a large-scale vertically integrated Company founded in 1991 manufacturing Active Pharmaceutical Ingredient (API), Pharmaceutical Formulation Intermediate (PFI) and Finished Dosage (FD). The Company over the years has created a strong presence in ‘the first line of defence’ products such as Paracetamol, Ibuprofen, Metformin, Methocarbamol, and Guaifenesin.

The company’s

Granules India Limited is a large-scale vertically integrated Company founded in 1991 manufacturing Active Pharmaceutical Ingredient (API), Pharmaceutical Formulation Intermediate (PFI) and Finished Dosage (FD). The Company over the years has created a strong presence in ‘the first line of defence’ products such as Paracetamol, Ibuprofen, Metformin, Methocarbamol, and Guaifenesin.

The company’s product-focused, vertically integrated business model has created a leadership position in several generic drugs. It has a strong presence in ‘first line of defence’ products, including Paracetamol, Ibuprofen, Guaifenesin and Metformin. It exports nearly 60% of its revenue to the US and Europe. Its key customers include some of the leading generic, as well as, branded pharmaceutical companies. Its integrated model for manufacturing APIs, PFIs and Finished Dosages enables it to provide products across the value chain and enhances its competitiveness. It has emerged into a knowledge driven, R&D focused, multi-product organization, with inherent strength in efficient manufacturing of high-volume pharmaceutical products.

Business area of the company

Granules India is one of the vertically integrated, high-growth pharmaceutical manufacturing company in India today. Based out of Hyderabad, India, it is into manufacturing Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediaries (PFIs) and Finished Dosages (FDs).

Products of the company

  • Active Pharmaceutical Ingredients
  • Pharmaceutical Formulation Intermediates
  • Finished Dosages
  • Speciality Products

Milestones

  • 1991: Trading of APIs
  • 1994: Production of various APIs
  • 1995: Venture into the manufacture of DC Paracetemol (PFI)
  • 1996: Targeting of OTC market in the US for Paracetemol PFI.
  • 1998: Expansion of PFI capacity.
  • 2000: Obtaining US FDA approval for PFI and other APIs.
  • 2001: Development of new PFIs such as Guaifenesin, Metformin and Ibuprofen etc.
  • 2002: Filing of new DMFs of the above PFIs and moving up of value chain in OTC products.
  • 2003: Setting up of the world's single largest PFI facility with a capacity of 7,200 TPA.
  • 2004: The only company in the world to manufacture combination PFIs on a commercial scale using different basic APIs with other excipients.
  • 2004: Addition of a Tableting facility with a capacity of one billion pieces per annum
  • 2005: Started construction of the Tableting facility with a capacity of 12 billion tablets.
  • 2006: Major expansion of Paracetamol facility, from a capacity of 3600 MT to 12000MT per annum
  • 2010: Granuels India Receives U.S. FDA Approval for its Metformin ANDA.
  • 2011: Granules established Granules-OmniChem, a JV with Ajinomoto OmniChem. The business focuses on the CRAMS space
  • 2012: Granules India Awarded India’s Most Admired Company in Exports & India’s Most Admired Company in Bulk Drugs.
  • 2012: Granules India Awarded Outstanding Exports - Formulations Award 2011-12 by Pharmexcil.
  • 2013: Granules acquired Auctus Pharma.
  • 2016: Wholly owned subsidiary Granules Pharmaceticals Inc (GPI) enters into agreement to acquire 12.5% stake in US based USPharma.
  • 2017: Granules India Limited featured in the list at 60th place in Fortune India's 2017 list of The Next 500 Companies.
  • 2018-19: Granules Pharmaceuticals Inc. launched generic Methylergonovine tablets (Methergine) in partnership with Hikma Pharmaceuticals Plc.
  • 2018-19: Granules Pharmaceuticals Inc. successfully launched Metformin XR and Methocarbamol under its own label.
  • 2020: Granules India gets nod to set up subsidiary in Hyderabad.
  • 2020: Granules India gets marketing approval from US FDA for Potassium Chloride Extended Release Tablets.
  • 2021: USFDA approves ANDA filed by Granules India’s arm for Potassium Chloride Oral Solution.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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