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Mar 26, 2023

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BQ Prime’s special research section collates quality and in-depth equity and

BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Granules India Ltd. delivered operationally in-line Q4 FY23, with healthy off-take of finished dosages as well as active pharma ingredient.

Granules India exited FY23 on a strong note with ~30% YoY Ebitda/profit after tax growth each. It has lined up capex for not only capacity addition but also backward integration to improve sales as well as profitability.

We cut our earnings per share by 3%/2% for FY24E/FY25E, to factor in:

higher research and development spent on abbreviated new drug applications/drug master files, and

higher interest cost.

Granules India is strengthening its core business through development of backward integration process for paracetamol/metformin and subsequent commercialisation. It is also working on enhancing its product pipeline for regulated markets.

Further, carbon-free energy, green hydrogen and other chemical derivatives are expected to not only improve profitability but also improve business scope.

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