Sharekhan has given Buy recommendation for Granules India with a target price of Rs. 475 in its research report issued on Mar 16, 2021
Sharekhan’s research report on Granules India
Granules’ outlook is robust across segment with finished dosages (FD) segment is expected to be a key growth driver. The core molecules are also expected to sustain growth momentum backed by geographic expansion. Granules is in the midst of diversifying / shifting its supplier base to India to lower dependence on china. Also higher input costs (largely for paracetamol) could pressurise margins, though expected to be a transient issue for 1-2 quarter only. Sturdy growth prospects, strong earnings visibility, healthy balance sheet & return ratios augur well.
We re-iterate our Buy recommendation on Granules India Limited (Granules) with an unchanged PT of Rs 475.