Anand Rathi is bullish on Granules India has recommended buy rating on the stock with a target price of Rs 227 in its research report dated June 03, 2020.
Anand Rathi 's research report on Granules India
On the export restriction imposed on paracetamol by the government and on supply disruptions due to Covid-19, Granules India’s Q4 FY20 topline slipped 2.2% y/y to `6bn. Its formulations division, however, grew 7.8% to `3.4bn, while PFI sales slid 18.5% to `781m and API sales 10.5% y/y to `1.8bn. Product launches from GPI and the higher contribution from formulations sales led to a 754bp y/y higher gross margin (53%). Adj. for the gains on divestment of a JV, an impairment charge and a deferred tax reversal, PAT was up 18.4% to `758m.
We expect revenue/PAT CAGRs over FY20-22 of ~25%/~23%. We maintain our Buy recommendation and raise our target price to `227 (earlier `210).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.