Buy Granules India; target of Rs 327: Geojit
Geojit recommended is bullish on Granules India recommended buy rating on the stock with a target price of Rs 327 in its research report dated July 20, 2020.
July 21, 2020 / 01:55 PM IST
Geojit's research report on Granules India
Granules achieved its highest ever quarterly revenue of Rs.736cr during Q1FY21 with a YoY growth of 24%. The Finished Dosages segment grew by 35% during the quarter as the company successfully launched Colchicine tablets and Butalbital APAP caffeine tablets in the U.S The company reduced its Promoter pledge percentage from 37.6% to 8.7% through the recent buyback process. We expect net profit to grow at a CAGR of 22% over FY20-FY22E on the back of new launches, entry into new geographies as well as its cost optimization measures.
Hence we value Granules at 15x FY22E EPS and reiterate a "Buy" rating, with a target price of Rs.327.
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