Shares of Granules India rose nearly 3 percent on March 3, touching an intraday high of Rs 475, after Life Insurance Corporation of India (LIC) increased its stake in the pharmaceutical firm to 5.02 percent.
The PSU insurer acquired an additional 17.83 lakh shares between January 1 and March 3, raising its holding from 4.26 percent as of December. The move reflects growing institutional confidence in the Hyderabad-based pharma firm.
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Granules India, which manufactures Active Pharmaceutical Ingredients (APIs), Formulation Intermediates (PFIs), and Finished Dosages (FDs) for global markets, has been in focus lately after receiving a Warning Letter from the US FDA for its Gagillapur facility last week.
The regulatory notice follows an inspection conducted in August 2024, classifying the site as "Official Action Indicated" (OAI). While this could delay pending product approvals, the company assured investors that existing manufacturing and distribution remain unaffected and that it will work closely with the regulator to resolve compliance issues.
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Financially, the company reported a subdued Q3 performance, with net profit falling 6.4 percent year-on-year to Rs 118 crore. Revenue declined 1.5 percent to Rs 1,137.6 crore, while EBITDA slipped 8 percent to Rs 230.2 crore. The EBITDA margin contracted to 20.2 percent from 22 percent in the same period last year.
The shares closed at Rs 472.85, higher by 2.4 percent from the last close on the NSE. Granules India shares have crashed 20 percent since the start of the year.
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