Granules India Ltd - Stock Valuation and Financial Performance

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

Granules India Share Price

432.80 6.00 1.41%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Granules India

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Granules India stock performance -

mw4me loader
P/E Ratio (SA):
22.04
Market Cap:
10,226.8 Cr.
52-wk low:
272
52-wk high:
480.5

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 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 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
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 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 15.9%15.5%13.7%11.9%8.3%7.4%13.3%20.2%12.3%14.8%-
Value Creation
Index
0.10.10.0-0.2-0.4-0.5-0.10.5-0.10.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,0021,2151,3281,3491,6472,0982,3103,1353,2383,9313,829
Sales YoY Gr.-21.3%9.3%1.6%22%27.4%10.1%35.7%3.3%21.4%-
Adj EPS 44.75.66.45.3612.722.615.920.919.1
YoY Gr.-18.5%19%14.7%-17.1%13.4%111%77.9%-29.5%31.1%-
BVPS (₹) 16.920.829.338.650.155.770.986.9101.6111124.3
Adj Net
Profit
80.295.6121146135153322559394505464
Cash Flow from Ops. 9413514419024227495375280664-
Debt/CF from Ops. 3.53.14.53.540.84.41.82.23.71.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 16.4%19%19.4%21.4%
Adj EPS 20.3%31.5%18%31.1%
BVPS23.3%17.2%16.1%9.3%
Share Price 31.6% 30.4% 10.8% 45.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
26.124.822.118.912.411.319.928.116.819.316.3
Op. Profit
Mgn %
16.317.420.322.317.815.921.427.820.221.521.7
Net Profit
Mgn %
87.99.110.88.27.31417.812.212.812.1
Debt to
Equity
1110.70.80.70.50.40.40.3-
Working Cap
Days
95110168241278237195169211198109
Cash Conv.
Cycle
29347811511711498741109533

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 19.39%

Net Profit is growing at healthy rate in last 3 years 18.03%

Return on Equity has declined versus last 3 years average to 16.30%

Sales growth is not so good in last 4 quarters at 0.08%

Latest Financials - Granules India Ltd.

Standalone Consolidated
TTM EPS (₹) 19.1 16.3
TTM Sales (₹ Cr.) 3,829 4,526
BVPS (₹.) 124.3 127.6
Reserves (₹ Cr.) 2,988 3,069
P/BV 3.40 3.31
PE 22.04 25.87
From the Market
52 Week Low / High (₹) 272.00 / 480.50
All Time Low / High (₹) 1.57 / 480.50
Market Cap (₹ Cr.) 10,227
Equity (₹ Cr.) 24.2
Face Value (₹) 1
Industry PE 48

Management X-Ray of Granules India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *6.926.926.9210.5910.594.034.034.034.034.03
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Granules India

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,0021,2151,3281,3491,6472,0982,3103,1353,2383,931
Operating Expenses 8391,0041,0581,0541,3531,7661,8162,2742,5943,096
Manufacturing Costs628299122152173195233291294
Material Costs5857077306599031,2501,2221,5101,7582,161
Employee Cost 6789106126148167193234248278
Other Costs 124125123148150175206296298362
Operating Profit 163211270296294332494861644835
Operating Profit Margin (%) 16.3%17.4%20.3%21.9%17.8%15.8%21.4%27.5%19.9%21.2%
Other Income 41715242826141813
Interest 19313732332827241639
Depreciation 265058717691102118126146
Exceptional Items 000000161000
Profit Before Tax 121132181207208242553733520664
Tax 403760646980109180133165
Profit After Tax 8195121143139162444553387499
PAT Margin (%) 8.1%7.8%9.1%10.6%8.5%7.7%19.2%17.6%11.9%12.7%
Adjusted EPS (₹)4.04.75.66.35.56.417.522.315.620.6
Dividend Payout Ratio (%)9%11%12%14%18%16%6%7%10%7%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 3444256368821,2731,4161,8032,1522,5182,686
Share Capital 20202223252525252524
Reserves 3244056148591,2471,3911,7772,1282,4942,662
Minority Interest0000000000
Debt300358577598958933793743954812
Long Term Debt222243184124433479421334234149
Short Term Debt77115393474525454372409720663
Trade Payables126183177210261277323508607744
Others Liabilities 86141178165147198228280294261
Total Liabilities 8561,1071,5681,8552,6392,8243,1463,6834,3734,503

Fixed Assets

Gross Block4747267859371,0661,1951,5231,6931,9492,201
Accumulated Depreciation138204261332405495596708778871
Net Fixed Assets3365225236066607009279851,1711,330
CWIP 39183513228633313016421163
Investments 14572897575506555592597677
Inventories120179210238227314344462591593
Trade Receivables1221944444686937046271,0141,2101,372
Cash Equivalents 2252111399762272241355203
Others Assets7268155297600204291225238265
Total Assets 8561,1071,5681,8552,6392,8243,1463,6834,3734,503

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 9413514419024227495375280664
PBT 121132181207208242553733520664
Adjustment 4581919592122-54154137178
Changes in Working Capital -50-47-80-53-223-50115-326-234-1
Tax Paid -23-31-48-59-53-87-120-186-143-177
Cash Flow From Investing Activity -159-130-171-300-495-243-165-233-318-96
Capex -65-102-100-184-275-188-119-222-324-212
Net Investments 900-10220-140200
Others -103-28-72-115-220-57-6635-84
Cash Flow From Financing Activity 80258636529-17-212-296151-519
Net Proceeds from Shares 111068329300433
Net Proceeds from Borrowing 1023913-66250102-60-102-95-93
Interest Paid -19-31-37-32-31-28-27-24-17-37
Dividend Paid -5-8-23-22-29-31-31-25-37-19
Others 124277346-61-95-150298-374
Net Cash Flow 163058-7358-33118-15411348
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)26.6224.8822.818.8212.9212.0427.5927.9516.5519.17
ROCE (%)24.0621.6620.3616.7912.7111.5622.6726.5316.2919.55
Asset Turnover Ratio1.391.271.010.80.740.770.780.930.80.89
PAT to CFO Conversion(x)1.161.421.191.330.171.41.110.680.721.33
Working Capital Days
Receivable Days34468612112812010594125120
Inventory Days41445359514752465955
Payable Days668090107957890100116114

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 12-Apr-2024 10:20 is ₹432.8.
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 12-Apr-2024 10:20 the market cap of Granules India stood at ₹10,226.8.
The latest P/E ratio of Granules India as of 12-Apr-2024 10:20 is 22.04.
The latest P/B ratio of Granules India as of 12-Apr-2024 10:20 is 3.40.
The 52-week high of Granules India is ₹480.5 and the 52-week low is ₹272.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Granules India is ₹3,829 ( 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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