Motilal Oswal's research report on Granules India
Granules India (GRAN) delivered a slightly better-than-expected revenue in 4QFY25. However, it reported largely in-line EBITDA/PAT for the quarter. GRAN achieved the highest-ever gross margin on a quarterly basis, fueled by a strategic shift of product mix towards finished dosage formulation (FDF). Geography-wise, GRAN has garnered consistent growth in the North America segment, forming 77% of total sales for FY25. GRAN continues to work on product pipelines for other geographies such as the EU, LATAM, India, and the ROW markets. We cut our earnings estimates by 8%/6% for FY26/FY27 factoring in 1) an extended production disruption at the Gagillapur site to implement remediation measures, 2) additional operational costs related to Senn Chemicals, and 3) a weak pricing in Paracetamol API.
Outlook
We value GRAN at 18x 12M forward earnings to arrive at our TP of INR600.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
