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Granules India Ltd - Stock Valuation and Financial Performance

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

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Granules India Share Price

 ₹495.95 -6.25 -1.24%
as on 18-Jul'25 16:59

Granules India Ltd - Stock Valuation and Financial Performance

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

Place order

Granules India Share Price

 ₹495.95 -6.25 -1.24%
as on 18-Jul'25 16:59

DeciZen - make an informed investing decision on Granules India

Overall Rating ⓘ
Bole Toh

1. Quality

Very Good
Check detailed 10 Yrs performace

2. Valuation

Somewhat overvalued
Check 10 Yrs Valuation charts

3. Price Trend

Semi Strong
Check Price chart

Granules India stock performance -

PE Chart Key Ratios
mw4me loader
P/E Ratio (SA):
37.68
Market Cap:
12,033.9 Cr.
52-wk low:
412.1
52-wk high:
724.6

Is Granules India Ltd an attractive stock to invest in?

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 good 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 Somewhat overvalued zone.

3. Is Granules India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Granules India Ltd is likely to Rise-somewhat 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
Standalone Basis P Consolidated Basis P
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 majority of the past ten years indicating its past ten year financial track record is very good

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % ⓘ20.4%16.8%12.7%11.6%22.7%26.5%16.3%19.6%17.1%11.7%-
Value Creation
Index ⓘ		0.50.2-0.1-0.20.61.00.20.50.3-0.1-

Growth Parameters ⓘ

Growth Parameters Colour Code Guide ⓘ

Sales ⓘ1,3281,3491,6472,0982,3103,1353,2383,9313,7553,0303,030
Sales YoY Gr.-1.6%22%27.4%10.1%35.7%3.3%21.4%-4.5%-19.3%-
Adj EPS ⓘ5.66.45.3612.722.615.920.918.112.313.2
YoY Gr.-14.7%-17.1%13.4%111%77.9%-29.5%31.1%-13.1%-31.9%-
BVPS (₹) ⓘ29.338.650.155.770.986.9101.6111127.8139.7139.7
Adj Net
Profit ⓘ		121146135153322559394505439299319
Cash Flow from Ops. ⓘ14419024227495375280664317823-
Debt/CF from Ops. ⓘ4.53.540.84.41.82.23.71.43.31-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

9 Years 5 Years 3 Years 1 Years
Sales ⓘ9.6%5.6%-2.2%-19.3%
Adj EPS ⓘ9.2%-0.6%-8.1%-31.9%
BVPSⓘ18.9%14.5%11.2%9.4%
Share Price 17.5% 13.4% 17.2% -1.4%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity % ⓘ		22.118.912.411.319.928.116.819.315.19.29.4
Op. Profit
Mgn % ⓘ		20.322.317.815.921.427.820.221.521.518.719
Net Profit
Mgn % ⓘ		9.110.88.27.31417.812.212.811.79.910.5
Debt to
Equity ⓘ		10.70.80.70.50.40.40.30.30.20
Working Cap
Days ⓘ		168241278237195169211198227276160
Cash Conv.
Cycle ⓘ		7811511711498741109511715555

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 9.40%

Sales growth has been subdued in last 3 years -2.19%

Net Profit has been subdued in last 3 years -8.13%

Sales growth is not so good in last 4 quarters at -19.54%

Latest Financials - Granules India Ltd.

Standalone Consolidated
TTM EPS (₹) 13.2 20.7
TTM Sales (₹ Cr.) 3,030 4,482
BVPS (₹.) ⓘ 139.7 152.6
Reserves (₹ Cr.) ⓘ 3,365 3,678
P/BV ⓘ 3.55 3.25
PE ⓘ 37.68 24.00
From the Market
52 Week Low / High (₹) 412.05 / 724.55
All Time Low / High (₹) 1.57 / 724.55
Market Cap (₹ Cr.) 12,034
Equity (₹ Cr.) 24.3
Face Value (₹) 1
Industry PE ⓘ 42.6

Management X-Ray of Granules India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *4.034.034.034.034.030.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of Granules India

Event Update

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Analyst's Notes

Granules India: Q1FY24 Result Update - 19 Aug 2023

Particulars

Q1FY24

YoY Trend

Comments

Revenue

986

-3%

 Adversely impacted by cyber-attack (isolated event,   security measures now improved)

EBITDA

137

-35%

 

EBITDA Margin

14%

-688 bps

 Negative operating leverage, FTS* penalties as well   as higher R&D spend impacted margins

PAT  

48

-62%

 Higher interest costs/depreciation, lower other income   impacted profitability

Poor results due to isolated event, recovery expected. *Failure to supply

 

Booster Stock: Granules India: Consistent Grower - 21 Jul 2020

About the company

Granules India, established in 1991, manufactures API, intermediates and finished dosages primarily to regulated markets like US and Europe.

Sales have increased from Rs. 256 Cr in 2008 to Rs. 2,739 Cr in trailing twelve months Jun’20 which is almost 10x i.e. 21% CAGR. Companies like Laurus Labs, Shilpa Medicare, Divis Labs, Aarti drugs are similar to Granules India however each has scale in different APIs/Formulations.

Granules has nine manufacturing facilities predominantly in and around Hyderabad and Vizag and one is USA. All facilities have US FDA clearance. Presence in India helps pharma companies to have lower cost from lower investment needs into plant and machinery and cheaper human resources.

Granules derives bulk of its sales from API and Formulations. It has large contribution from regulated markets like US and Europe.

Recently the company is focusing on improving contribution from higher-margin finished dosages segment.

Recent growth came from market share gains and new drug introduction in formulations.

Financials

Granules India’s sales growth is 16% CAGR and 20% CAGR over last 5 years.

Its average ROCE is close to 17% in last 5 years despite of high investment base into new facilities.

Click here for complete financials of Granules India

Future Prospects

Granules India is expanding its base business by entering into new geographies like Europe, Canada, and South Africa. It also is adding new molecules to the base business and focusing on operational efficiencies and process innovation through R&D.

The company targets volume-based products and large scale manufacturing with competitive advantage & secured supply source for the customers. Scale gives the company to produce low cost ingredients and discourages other players from entering the same ingredient over medium term.

At R&D front, the company is developing controlled substances and niche/differentiated products in varied dosage forms. The plan is to have average 7- 8 ANDAs/Dossiers launches per year. The aim to use inhouse API manufacturing for keep formulations costs lower.

Positive triggers

  • Opportunity offered by growing Metformin market
  • Capacity addition for Paracetamol, and guaifenesin APIs
  • Established leadership position in its core molecules in regulated markets
  • Financial deleveraging leading to rise in equity value.

Risks

  • Regulatory Compliance risk (USFDA)
  • Negative cash flows due to regular capital investment
  • In past there were issues on investment amount invested in new capacities but offlate the disclosures have improved.

Valuation

Granules predominantly an API company has large investment requirement. It has reasonable ROE with and growing sales.

Backed by capacity addition, the company is expected to report 30% growth in FY21 and ~15% thereafter.

At current price of Rs. 260/share, it trades at P/E ratio 19x on base of high margins, and Price to Sales of 2.5x including debt.

Based on our calculation the company trades at 17x FY22 EPS. We believe Granules is a good buy close to Rs. 220/share. You can add partially at current price and wait for market volatility to add more.

Granules India has medium term growth opportunity so can be added over next 6 months.

While the future potential is large, the execution, competition and regulation can lead to lower than expected performance and hence disappointment. If we find such risks that outweigh future prospects, we will recommend to exit Granules even at a small loss. 

Note for Booster Stocks: These stocks are more volatile that large cap stocks. They are recommended to enhance your portfolio returns. Should any new information lead us to conclude that the recommended stock may not deliver as per expectations; we will recommend you to sell it. You are expected to act/exit even at a loss. You need to think portfolio and not individual stocks.  

Key Ratios of Granules India

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
Standalone Basis Consolidated Basis
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales1,3281,3491,6472,0982,3103,1353,2383,9313,7553,030
Operating Expenses ⓘ 1,0581,0541,3531,7661,8162,2742,5943,0962,9542,465
Manufacturing Costs99122152173195233291294364403
Material Costs7306599031,2501,2221,5101,7582,1611,9071,344
Employee Cost 106126148167193234248278333342
Other Costs ⓘ 123148150175206296298362350376
Operating Profit ⓘ 270296294332494861644835801565
Operating Profit Margin (%) 20.3%21.9%17.8%15.8%21.4%27.5%19.9%21.2%21.3%18.6%
Other Income ⓘ 715242826141813641
Interest ⓘ 37323328272416397263
Depreciation ⓘ 58717691102118126146144146
Exceptional Items ⓘ 0000161000031
Profit Before Tax ⓘ 181207208242553733520664591427
Tax ⓘ 60646980109180133165155108
Profit After Tax 121143139162444553387499436319
PAT Margin (%) 9.1%10.6%8.5%7.7%19.2%17.6%11.9%12.7%11.6%10.5%
Adjusted EPS (₹)5.66.35.56.417.522.315.620.618.013.2
Dividend Payout Ratio (%)12%14%18%16%6%7%10%7%8%11%

Balance Sheet

(All Figures are in Crores.)
Standalone Basis Consolidated Basis
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund 6368821,2731,4161,8032,1522,5182,6863,0973,389
Share Capital ⓘ 22232525252525242424
Reserves ⓘ 6148591,2471,3911,7772,1282,4942,6623,0733,365
Minority Interest0000000000
Debt577598958933793743954812954756
Long Term Debt184124433479421334234149500
Short Term Debt393474525454372409720663904756
Trade Payables177210261277323508607744655613
Others Liabilities ⓘ 178165147198228280294261300393
Total Liabilities ⓘ 1,5681,8552,6392,8243,1463,6834,3734,5035,0065,152

Fixed Assets

Gross Block7859371,0661,1951,5231,6931,9492,2012,3122,499
Accumulated Depreciation2613324054955967087788719891,094
Net Fixed Assetsⓘ 5236066607009279851,1711,3301,3241,405
CWIP ⓘ 351322863331301642116353121
Investmentsⓘ 8975755064455925976779411,282
Inventories210238227314344462591593579648
Trade Receivables4444686937046271,0141,2101,3721,6331,295
Cash Equivalents 111399762272241355203228170
Others Assetsⓘ 155297600204401225238265248231
Total Assets ⓘ 1,5681,8552,6392,8243,1463,6834,3734,5035,0065,152

Cash Flow

(All Figures are in Crores.)
Standalone Basis Consolidated Basis
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity ⓘ 14419024227495375280664317823
PBT ⓘ 181207208242553733520664591427
Adjustment ⓘ 919592122-54154137178229229
Changes in Working Capital ⓘ -80-53-223-50115-326-234-1-347257
Tax Paid ⓘ -48-59-53-87-120-186-143-177-157-91
Cash Flow From Investing Activity ⓘ -171-300-495-243-165-233-318-96-303-552
Capex -100-184-275-188-119-222-324-212-119-205
Net Investments 0-10220-14020016-13
Others ⓘ -72-115-220-57-6635-84-200-335
Cash Flow From Financing Activityⓘ 8636529-17-212-296151-51926-340
Net Proceeds from Shares ⓘ 106832931043335
Net Proceeds from Borrowing ⓘ -55-66250102-60-102-95-93-102-100
Interest Paid ⓘ -37-32-31-28-27-24-17-37-72-57
Dividend Paid ⓘ -23-22-29-31-31-25-37-19-36-36
Others ⓘ 967346-62-95-150298-374233-152
Net Cash Flow ⓘ 58-7358-33118-1541134840-70

Finance Ratio

Standalone Basis Consolidated Basis
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)22.818.8212.9212.0427.5927.9516.5519.1715.089.85
ROCE (%)20.3616.7912.7111.5622.6726.5316.2919.5517.0611.7
Asset Turnover Ratio1.010.80.740.770.780.930.80.890.790.6
PAT to CFO Conversion(x)1.191.330.171.41.110.680.721.330.732.58
Working Capital Days
Receivable Days8612112812010594125120146175
Inventory Days53595147524659555773
Payable Days90107957890100116114134172

Granules India Ltd Stock News

Granules India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Granules India on 18-Jul-2025 16:59 is ₹495.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-Jul-2025 16:59 the market cap of Granules India stood at ₹12,033.9.
The latest P/E ratio of Granules India as of 18-Jul-2025 16:59 is 37.68.
The latest P/B ratio of Granules India as of 18-Jul-2025 16:59 is 3.55.
The 52-week high of Granules India is ₹724.5 and the 52-week low is ₹412.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Granules India is ₹3,030 ( Cr.) .

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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