Granules India Ltd Stock Analysis

BSE: 532482 | NSE: GRANULES | Pharmaceuticals & Drugs | Mid Cap

BSE Share Price May 18, 15:09
262.90 12.40 (4.95%)

DeciZen - Make an Informed Decision on Granules India

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Granules India Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Granules India Ltd is a average quality company.

2. Is Granules India Ltd undervalued or overvalued?

The key valuation ratios of Granules India Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Granules India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Granules India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Granules India:

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

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 10.4%9.2%15.9%15.5%13.7%11.9%8.3%7.4%13.3%20.1%-
Value Creation Index -0.3-0.30.10.1-0.0-0.2-0.4-0.5-0.10.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5636801,0021,2151,3281,3491,6472,0982,3103,1353,107
YoY Gr. Rt. %-20.8%47.4%21.3%9.3%1.6%22%27.4%10.1%35.7%-
Adj EPS 1.41.544.75.66.45.3612.722.616.1
YoY Gr. Rt. %-10.3%163.3%18.5%19%14.7%-17.1%13.4%111%77.9%-
BVPS (₹) 12.213.316.920.829.338.650.155.770.986.996.9
Adj Net Profit 27.330.280.295.6121146135153322559400
Cash Flow from Ops. 39.550.99413514419024227495375-
Debt/CF from Ops. 4.14.53.53.14.53.540.84.41.82.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 21%18.8%23.9%35.7%
Adj EPS 36.6%32.3%62.1%77.9%
BVPS 24.424.320.122.6
Share Price 39.9% 12.2% 35.5% -19.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 11.711.726.124.822.118.912.411.319.928.117.5
Op. Profit Mgn % 12.911.616.317.420.322.317.815.921.427.821.2
Net Profit Mgn % 4.84.587.99.110.88.27.31417.812.9
Debt to Equity 0.70.91110.70.80.70.50.4-
Working Cap Days 99106951101682412782371951690
Cash Conv. Cycle 403929347811511711498740

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 23.94%

Net Profit is growing at healthy rate in last 3 years 62.06%

Debt to equity has declined versus last 3 years average to 0.39

Sales growth is good in last 4 quarters at 14.52%

Return on Equity has declined versus last 3 years average to 17.50%

Latest Financials - Granules India Ltd.

Standalone Consolidated
TTM EPS (₹) 16.1 17.3
TTM Sales (₹ Cr.) 3,107 3,534
BVPS (₹.) 96.9 99.3
Reserves (₹ Cr.) 2,379 2,437
P/BV 2.58 2.54
PE 15.55 14.56
From the Market
52 Week Low / High (₹) 232.15 / 404.50
All Time Low / High (₹) 1.57 / 438.00
Market Cap (₹ Cr.) 6,213
Equity (₹ Cr.) 24.8
Face Value (₹) 1
Industry PE 37.5

Management X-Ray of Granules India :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *30.2937.628.648.648.648.646.926.926.926.92
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Granules India Ltd

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.
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