GRAN­ULES IN­DIA

Dalal Street Investment Journal - - RECOMMENDATIONS EQUITY -

The com­pany is a man­u­fac­turer of Parac­eta­mol and is en­gaged in pharma man­u­fac­tur­ing chain from API to fin­ished dosages. It is mulling ca­pac­ity ex­pan­sion for its ma­jor drugs Parac­eta­mol, Met­formin and Guaife­n­esin, for which it is in­cur­ring capex of ₹300 crore. Apart from this, the com­pany has re­cently en­tered into CRAMS busi­ness through a JV with Om­nichem and has ven­tured into mak­ing of Rx drugs and has filed ANDAS. On the fi­nan­cial front, it posted a PAT growth of nearly 17 per cent in Q4FY17 de­spite tepid rev­enue growth of just 0.7 per cent. On an an­nual ba­sis, it posted a ro­bust PAT growth of nearly 39 per cent de­spite of rev­enue de-growth in FY17. Tak­ing into con­sid­er­a­tion of a for­ward FY18 P/E of nearly 17 and 30 per cent PAT CAGR over FY17-19, we rec­om­mend a Buy, for a tar­get of ₹161 and with a stop loss of ₹125.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.