Moneycontrol
Feb 13, 2017 02:07 PM IST | Source: Moneycontrol.com

Hold Granules India; target of Rs 151: Nirmal Bang

Nirmal Bang recommended hold rating on Granules India with a target price of Rs 151 in its research report dated February 08, 2017.

Hold Granules India; target of Rs 151: Nirmal Bang


Nirmal Bang's research report on Granules India


Granules India’s results were broadly in-line with expectations Sales grew by 10.6% yoy to Rs 360 cr. EBITDA margins improved to 21.2% from 20.1% in Q3FY16 and 20.4% in Q2FY17 on account of favorable product mix and higher regulated sales.


Outlook


As expected earlier FY17 is turned out to be a year of consolidation. However we expect growth to come back from FY18 onwards on back of increased capacities, commercialization of Omnichem JV. We have assigned a multiple of 18x FY18E earnings and based on that we recommend HOLD on the stock for price target of Rs 151.

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