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Last Updated : Jun 05, 2020 09:34 AM IST | Source: Moneycontrol.com

Buy Granules India; target of Rs 227: Anand Rathi

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.

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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.


Outlook


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


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First Published on Jun 5, 2020 09:34 am
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