Buy Granules India: IIFL Securities's Target Price Rs 512

IIFL Securities has issued a "buy" recommendation for Granules India, with a target price of Rs 512. The current market price of Granules India is Rs 496.2. This represents a potential upside of 3.4% for investors who purchase the stock at the current price. The recommendation is based on the company's strong financial performance, its growing product portfolio, and its expansion plans in the US and Europe. Granules India is a leading manufacturer of pharmaceutical formulations and active pharmaceutical ingredients (APIs). The company has a strong presence in India and is also expanding its global footprint.

About Granules India:

Granules India is a multinational pharmaceutical company headquartered in Hyderabad, India. It is primarily engaged in manufacturing active pharmaceutical ingredients (APIs), pharmaceutical formulations, and biopharmaceuticals. The company's product portfolio includes over 400 APIs, covering various therapeutic areas such as cardiovascular, central nervous system, gastrointestinal, and oncology. Granules India has a global footprint with manufacturing facilities in various countries, including India, the United States, China, and Germany. The company serves a diverse customer base in over 100 countries across the globe.

52 Week Price Trend:

Granules India, a pharmaceutical company, is currently trading at Rs. 496.2, demonstrating a substantial gain from its 52-week low of Rs. 267.75. However, it is still below the 52-week high of Rs. 480.5 achieved earlier. This suggests that the stock may have potential for further growth but could face resistance near the previous highs. Investors should carefully monitor the company's performance, market trends, and overall industry outlook before making investment decisions.

Stratzy's MOST Analysis:

Granules has been rated AA- by Stratzy's MOST framework, indicating medium fundamental risks. This comprehensive evaluation considers the company's management, outlook, safety (financial health), and trend. Each pillar receives a score, contributing to the overall rating. The AA- rating suggests that Granules has strong management, a positive outlook, satisfactory financial health, and a stable trend. This rating indicates that Granules is a company with a solid foundation and moderate risk factors, making it a potentially attractive investment option.

Company's Fundamentals:

Granules India (NSE: GRANULES) is a pharmaceutical company with a stock PE ratio of 28.82, indicating that its market capitalization is 28.82 times its annual earnings. The PB ratio of 3.84 suggests that the company's market value is 3.84 times its book value, indicating that investors are willing to pay a premium for its assets. However, the dividend yield of 0.32% is relatively low, indicating that the company does not distribute a significant portion of its profits as dividends to shareholders.

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

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