Buy Granules India, target price Rs 355: ICICI Direct

ICICI Direct has buy call on Granules India with a target price of Rs 355. The current market price of Granules India is Rs 288.75. Time period given by analyst is a year when Granules India price can reach defined target.


Granules India, incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 7009.56 Crore) operating in Pharmaceuticals sector.

Granules India key Products/Revenue Segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1147.07 Crore, down -.73 % from last quarter Total Income of Rs 1155.52 Crore and up 14.52 % from last year same quarter Total Income of Rs 1001.64 Crore. Company has reported net profit after tax of Rs 124.33 Crore in latest quarter.

The company’s top management includes Mr.Krishna Prasad Chigurupati, Dr.Saumen Chakraborty, Mr.Robert George Cunard, Mr.Arun Sawhney, Mr.Arun Rao Akinepally, Mr.K B Sankar Rao, Mr.Harsha Chigurupati, Mrs.Uma Devi Chigurupati, Dr.K V S Ram Rao, Mrs.Sucharita Rao Palepu. Company has B S R & Associates LLP as its auditors. As on 31-12-2022, the company has a total of 24 Crore shares outstanding.

Investment Rationale
The brokerage maintains BUY rating on the back of focus on diversification of API portfolio, focus on margin improvement via proposed product mix changes and capex on backward integration, and compelling risk-reward matrix based on FY25E earnings