In-line 3Q; backward integration projects on track

24 Jan 2024
5 Min read 
  • Granules India delivered an in-line performance in 3QFY24.
  •  Backward integration projects for core products are on track.
  •  Earnings estimates reduced for FY24/FY25/FY26 due to inventory corrections and increased competition.
  •  Positive outlook due to healthy ANDA pipeline and expanding presence in manufacturing value chain.
  •  TP of INR475 maintained, with a Buy rating.
  •  Stable sales in 3QFY24, with strong growth in the formulation segment.
  •  Gross margin expanded, but EBITDA margin growth was lower due to higher expenses.
  •  Expect revenue growth to revive in FY25 onward.
  •  Expansion plans in Europe and the US to drive future growth.
  •  Reiterate BUY recommendation.
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