Best Stocks to Buy Today : IIFL Securities's call on Granules India - June 21

On June 21, IIFL Securities issued a buy call on Granules India, a pharmaceutical company, with a target price of Rs 512. This represents an upside potential of approximately 3.2% from the current market price of Rs 496.2. The brokerage firm cited the company's strong financial performance and growth prospects as reasons for its bullish outlook. Granules India has witnessed steady revenue growth and increasing profitability in recent quarters, driven by its presence in emerging markets and focus on high-value products. The company's expansion plans and strong cash flow generation are also viewed positively by IIFL Securities.

About Granules India:

Granules India Limited is a pharmaceutical company headquartered in Hyderabad, India. The company manufactures and markets active pharmaceutical ingredients (APIs), pharmaceutical formulations, and biopharmaceutical products. Granules India has operations in India, the United States, China, and Europe. The company's product portfolio includes APIs for cardiovascular, anti-diabetic, anti-infective, and oncology treatments, as well as finished dosage formulations such as tablets, capsules, and injectables. Granules India is a vertically integrated company with in-house capabilities for API manufacturing, formulation development, and clinical research. The company serves customers in over 100 countries and has a global presence through its subsidiaries and representative offices. Granules India is listed on the National Stock Exchange of India (NSE) under the symbol "GRANULES".

52 Week Price Trend:

Granules India's current market price (CMP) stands at Rs 496.2, offering a potential upside of around 3.5% from its 52-week high of Rs 480.5. However, investors should be mindful of the stock's significant volatility, as evident from its wide range of 52-week prices between Rs 267.75 and Rs 480.5. Technical analysis suggests that the stock is currently above its key moving averages and has formed a bullish pattern, indicating a possible continuation of its uptrend. Nonetheless, it is crucial to conduct thorough research and consider the company's fundamentals and market conditions before making any investment decisions.

Stratzy's MOST Analysis:

Granules has been rated AA- by Stratzy's MOST framework, indicating a medium fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. Granules has a strong management team with a proven track record of success, and the company has a positive outlook for the future. The company's financial position is sound, and it has a strong cash flow. The company's trend is also positive, and it is expected to continue to grow in the future.

Company's Fundamentals:

Granules India (GRANULES) is currently trading at a Stock PE of 28.82, indicating that investors are willing to pay Rs. 28.82 for every rupee of earnings. The Price-to-Book Ratio (PB Ratio) of 3.84 suggests that the company's market value is 3.84 times its book value, implying a premium over its assets. GRANULES offers a Dividend Yield of 0.32%, providing investors with a modest stream of passive income. These metrics indicate that GRANULES is fairly valued, with a moderate premium on its earnings and book value, while offering a low level of dividend income.

Fundamental and Technical information provided in this blog were last updated on 21 Jun, 2024

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