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Last Updated : Jul 21, 2020 06:05 PM IST | Source: Moneycontrol.com

Buy Granules India; target of Rs 330: Anand Rathi

Anand Rathi recommended hold rating on Granules India with a target price of Rs 330 in its research report dated July 20, 2020.

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Anand Rathi 's research report on Granules India


Granules India’ Q1 FY21 exceeded our expectations on all fronts and so far was one of its best quarters. Sales grew 24% y/y to `7.4bn driven by its formulations and PFI divisions. The former grew 35.2% to `3.9bn, the latter 42% to `1.4bn. API sales at `2.1bn came flat. Product rationalization and market-share gains in high-value products led to a 1,092bp surge in the gross margin (60%). The EBITDA margin though expanded 430bps to 25% due to product-recall costs (`97m) and higher employee cost. PAT was up 32.6% to `1.1bn. We expect ~21%/~27% revenue/PAT CAGRs over FY20-23.


Outlook


We roll over valuations to FY23 and raise our target to `330 (earlier `312) while retaining our Buy call.





For all recommendations report, click here


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First Published on Jul 21, 2020 06:05 pm
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