IIFL Securities's Stock Idea: Buy Granules India with Target Rs 475

IIFL Securities has issued a "buy" recommendation for Granules India, with a target price of Rs 475. This represents a potential gain of 2.9% from the current market price of Rs 461.5. The brokerage firm cited the company's strong financial performance, healthy order book, and expansion plans as reasons for its bullish outlook. Granules India is a leading manufacturer of active pharmaceutical ingredients (APIs) and finished dosage forms, catering to both domestic and international markets.

About Granules India:

Granules India Limited is a Hyderabad-based pharmaceutical company specializing in manufacturing of pharmaceutical formulations (Active Pharmaceutical Ingredients (APIs), Finished Dosage Formulations (FDFs), and Pharmaceutical Formulations Intermediates (PFIs)). The company's product portfolio includes antibiotics, anti-retrovirals, anti-malarials, and other therapeutic segments. Granules India has a global presence with operations in India, the United States, the United Kingdom, China, and Brazil. The company has a strong R&D pipeline focused on developing innovative and affordable medicines. Granules India is committed to providing high-quality, affordable medicines to patients worldwide.

52 Week Price Trend:

Granules India (NSE: GRANULES) is a pharmaceutical company headquartered in Hyderabad, India. As of February 23, 2023, the company's current market price (CMP) stands at Rs 461.5. Over the past 52 weeks, the stock has experienced a high of Rs 480.5 and a low of Rs 267.75. This indicates a positive trend with a growth of around 18.7% compared to its 52-week low. The company is known for its strengths in manufacturing active pharmaceutical ingredients (APIs) and pharmaceutical formulation intermediates (PFIs).

Stratzy's MOST Analysis:

GRANULES has received an AA- rating from Stratzy's MOST framework, indicating a Medium Fundamental Risk. This rating is based on the company's performance in four key areas: Management, Outlook, Safety, and Trend. A score of AA- indicates that GRANULES is a relatively low-risk investment with good management, a positive outlook, and a strong track record of safety and profitability. Investors should consider GRANULES as a potential investment opportunity with balanced risk and reward potential.

Company's Fundamentals:

Granules India (NSE: GRANULES) is a leading pharmaceutical company in India. Its stock fundamentals are as follows: - **Stock PE (Price-to-Earnings Ratio): 28.82** - This indicates that the stock is currently trading at a multiple of 28.82 times its annual earnings. This is a relatively high PE ratio, suggesting that the stock is considered overvalued compared to its earnings. - **PB Ratio (Price-to-Book Ratio): 3.84** - This measures the company's market value relative to its book value (assets minus liabilities). A PB ratio of 3.84 means that the market is valuing the company at 3.84 times its book value, which is a premium to its actual assets. - **Dividend Yield: 0.32%** - This represents the annual dividend payout as a percentage of the current stock price. A dividend yield of 0.32% is very low, indicating that the company is not distributing a significant portion of its earnings to shareholders.

Fundamental and Technical information provided in this blog were last updated on 06 Jun, 2024

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