Buy Granules India; target of Rs 400: Sharekhan

Sharekhan is bullish on Granules India has recommended buy rating on the stock with a target price of Rs 400 in its research report dated December 23, 2022.

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December 26, 2022 / 11:15 IST

26 Aug, 2025 12:21

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Sharekhan's research report on Granules India

The company management believes that paracetamol sales will continue at stable levels over short term as they have a set of marquee customers for the same in the US to whom it is trying to convert to formulations supplies from API as well. The company is gaining market share also from other suppliers for Paracetamol. Additionally, the company has launched Paracetamol in Europe in Q3FY23 and expects it to ramp up from Q4FY23E. The management believes that the China-led price rise in APIs should not affect it as it has diversified its supplies of PAP away from China by engaging with alternate set of sources over the last 2 quarters. The recent price changes taken up by NPPA in Paracetamol and Metformin in India should not cause concerns as it does not deal in these formulations in the Indian market. The company has announced setting up a green chemical plant soon, whose details are awaited.

Outlook

We upgrade our rating on Granules India to Buy from Hold and maintain the price target (PT) at Rs. 400 as we believe Granules India is well-poised to benefit from diversified supply of its Paracetamol API secured away from China in the recent quarters.

For all recommendations report, click here