Fundamental Analysis of Granules India Ltd

Share Price and Basic Stock Data

Last Updated: September 6, 2024, 11:49 pm

Market Cap	16,677 Cr.
Current Price	688
High / Low	725/306
Stock P/E	33.9
Book Value	133
Dividend Yield	0.22 %
ROCE	15.4 %
ROE	13.4 %
Face Value	1.00
PEG Ratio	7.91

Data Source: screener.in

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

Competitors of Granules India Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Industry Average	0 Cr	0		0	0	0%	0%	0%	0

Granules India Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	845	799	850	888	997	1,030	1,020	1,151	1,146	1,196	986	1,189	1,156
Expenses	633	597	648	737	823	837	808	908	915	967	849	977	905
Operating Profit	212	202	201	151	174	193	212	243	231	228	137	213	250
OPM %	25%	25%	24%	17%	17%	19%	21%	21%	20%	19%	14%	18%	22%
Other Income	16	3	8	4	5	4	5	5	1	3	0	2	1
Interest	7	7	7	5	5	6	7	13	17	19	22	26	29
Depreciation	37	44	39	40	39	40	43	44	48	49	49	53	52
Profit before tax	184	154	163	110	135	150	166	190	167	164	65	136	170
Tax %	20%	17%	26%	27%	25%	26%	23%	24%	26%	27%	27%	25%	26%
Net Profit	147	128	120	81	101	111	128	145	124	120	48	102	126
EPS in Rs	5.93	5.15	4.85	3.26	4.07	4.48	5.14	5.84	5.14	4.94	1.98	4.21	5.18

Last Updated: July 11, 2024, 7:25 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: August 9, 2024, 6:42 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	654	761	1,084	1,292	1,357	1,411	1,685	2,279	2,599	3,238	3,765	4,512	4,517
Expenses	575	676	925	1,082	1,081	1,112	1,406	1,895	2,073	2,382	3,038	3,597	3,707
Operating Profit	79	86	159	210	276	299	278	384	526	856	727	915	809
OPM %	12%	11%	15%	16%	20%	21%	17%	17%	20%	26%	19%	20%	18%
Other Income	1	1	4	3	5	35	27	75	90	26	13	12	6
Interest	17	18	20	32	37	32	33	28	27	26	23	56	84
Depreciation	21	23	30	53	58	72	76	105	137	151	159	184	199
Profit before tax	43	46	112	128	186	230	196	326	451	704	558	687	532
Tax %	30%	30%	33%	29%	33%	28%	32%	27%	26%	22%	26%	25%
Net Profit	30	33	75	91	123	165	133	236	335	549	413	517	394
EPS in Rs	1.49	1.62	3.71	4.45	5.68	7.19	5.22	9.30	13.19	22.18	16.64	21.34	16.27
Dividend Payout %	13%	12%	9%	11%	11%	13%	19%	11%	8%	7%	9%	7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2012-2013	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
YoY Net Profit Growth (%)	10.00%	127.27%	21.33%	35.16%	34.15%	-19.39%	77.44%	41.95%	63.88%	-24.77%	25.18%
Change in YoY Net Profit Growth (%)	0.00%	117.27%	-105.94%	13.83%	-1.02%	-53.54%	96.84%	-35.49%	21.93%	-88.65%	49.95%

Growth

Compounded Sales Growth
10 Years:	15%
5 Years:	15%
3 Years:	12%
TTM:	5%

Compounded Profit Growth
10 Years:	18%
5 Years:	11%
3 Years:	-10%
TTM:	13%

Stock Price CAGR
10 Years:	26%
5 Years:	48%
3 Years:	19%
1 Year:	103%

Return on Equity
10 Years:	18%
5 Years:	19%
3 Years:	17%
Last Year:	13%

Last Updated: August 2, 2024, 8:15 pm

Balance Sheet

Last Updated: August 9, 2024, 6:42 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Equity Capital	20	20	20	22	23	25	25	25	25	25	24	24
Reserves	255	336	411	640	881	1,279	1,504	1,818	2,149	2,562	2,811	3,201
Borrowings	270	442	482	641	656	978	991	892	849	1,106	1,136	1,315
Other Liabilities	137	194	289	260	319	388	458	487	690	819	932	980
Total Liabilities	683	992	1,203	1,563	1,879	2,670	2,979	3,223	3,713	4,512	4,903	5,521
Fixed Assets	263	482	617	560	644	777	944	1,204	1,332	1,541	1,911	2,108
CWIP	109	125	62	77	267	515	496	294	239	356	239	260
Investments	10	0	0	70	108	157	210	19	19	20	21	22
Other Assets	301	385	524	856	859	1,222	1,328	1,706	2,123	2,594	2,732	3,132
Total Assets	683	992	1,203	1,563	1,879	2,670	2,979	3,223	3,713	4,512	4,903	5,521

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	91	108	150	151	188	-1	262	476	432	332	739	439
Cash from Investing Activity	-128	-255	-146	-162	-326	-462	-270	-160	-277	-379	-192	-358
Cash from Financing Activity	46	147	19	86	56	529	-17	-213	-299	190	-440	8
Net Cash Flow	10	0	24	75	-82	66	-25	103	-144	143	107	90

Free Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	79.00	-184.00	-283.00	-272.00	-365.00	-357.00	-700.00	-607.00	-366.00	7.00	726.00	914.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	34	37	39	101	108	136	108	93	86	90	77	80
Inventory Days	107	99	110	128	145	114	112	125	205	190	182	235
Days Payable	72	77	92	91	116	112	94	102	142	124	124	135
Cash Conversion Cycle	69	59	57	138	137	138	126	116	150	156	135	179
Working Capital Days	56	48	41	115	120	156	120	116	109	119	102	121
ROCE %	13%	20%	19%	20%	18%	12%	15%	17%	25%	17%	19%	15%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023
Promoters	42.04%	42.04%	42.04%	42.04%	41.98%	41.98%	41.98%	42.02%	42.02%	42.02%	42.02%	41.97%
FIIs	26.38%	23.11%	18.35%	21.18%	21.38%	23.19%	23.13%	22.66%	23.66%	23.90%	21.35%	21.48%
DIIs	0.32%	1.50%	2.86%	2.77%	4.34%	3.98%	3.03%	4.22%	4.75%	5.03%	6.68%	7.06%
Public	31.27%	33.36%	36.76%	34.01%	32.30%	30.85%	31.85%	31.10%	29.56%	29.05%	29.95%	29.51%
No. of Shareholders	1,58,393	1,93,871	2,61,165	2,39,520	2,16,385	2,10,785	2,14,539	2,02,329	1,90,894	1,87,777	2,01,054	2,07,055

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Aditya Birla Sun Life Pure Value Fund	2,546,492	1.76	82.99	425,000	2024-09-07	499.17%
Quant Small Cap Fund	1,432,894	0.49	46.7	425,000	2024-09-07	237.15%
SBI Arbitrage Opportunities Fund	776,000	0.11	25.29	425,000	2024-09-07	82.59%
Quant Tax Plan	720,000	0.47	23.46	425,000	2024-09-07	69.41%
Kotak Equity Arbitrage Fund - Regular Plan	656,000	0.07	21.38	425,000	2024-09-07	54.35%
HSBC Arbitrage Fund	428,000	0.79	13.95	425,000	2024-09-07	0.71%
Quant Business Cycle Fund	425,000	2.16	13.85	425,000	2024-09-07	0%
Quant Active Fund	420,000	0.23	13.69	425,000	2024-09-07	-1.18%
UTI Arbitrage Fund	332,000	0.29	10.82	425,000	2024-09-07	-21.88%
Quant Flexi Cap Fund	330,000	0.5	10.75	425,000	2024-09-07	-22.35%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	16.73	21.05	16.66	22.05	13.19
Diluted EPS (Rs.)	16.72	21.00	16.60	21.95	13.15
Cash EPS (Rs.)	25.28	28.97	23.04	28.30	17.58
Book Value[Excl.RevalReserv]/Share (Rs.)	133.08	117.13	104.32	87.75	72.52
Book Value[Incl.RevalReserv]/Share (Rs.)	133.08	117.13	104.32	87.75	72.52
Revenue From Operations / Share (Rs.)	185.93	186.41	151.81	130.72	102.21
PBDIT / Share (Rs.)	35.50	38.32	29.83	35.62	22.10
PBIT / Share (Rs.)	26.94	30.70	23.44	29.50	16.71
PBT / Share (Rs.)	22.58	28.39	22.50	28.44	16.74
Net Profit / Share (Rs.)	16.72	21.34	16.64	22.18	12.19
NP After MI And SOA / Share (Rs.)	16.72	21.34	16.64	22.18	13.19
PBDIT Margin (%)	19.09	20.55	19.65	27.24	21.62
PBIT Margin (%)	14.49	16.46	15.43	22.56	16.35
PBT Margin (%)	12.14	15.23	14.82	21.75	16.37
Net Profit Margin (%)	8.99	11.44	10.96	16.97	11.92
NP After MI And SOA Margin (%)	8.99	11.44	10.96	16.97	12.90
Return on Networth / Equity (%)	12.56	18.22	15.95	25.28	18.19
Return on Capital Employeed (%)	18.99	24.04	20.24	28.76	18.19
Return On Assets (%)	7.34	10.53	9.14	14.79	10.38
Long Term Debt / Equity (X)	0.02	0.05	0.09	0.15	0.22
Total Debt / Equity (X)	0.37	0.37	0.42	0.38	0.43
Asset Turnover Ratio (%)	0.86	0.87	0.80	0.90	0.75
Current Ratio (X)	1.40	1.42	1.53	1.70	1.82
Quick Ratio (X)	0.77	0.78	0.92	1.04	1.33
Inventory Turnover Ratio (X)	1.80	2.67	2.72	3.34	3.44
Dividend Payout Ratio (NP) (%)	0.00	3.60	9.00	4.50	9.13
Dividend Payout Ratio (CP) (%)	0.00	2.65	6.50	3.53	6.48
Earning Retention Ratio (%)	0.00	96.40	91.00	95.50	90.87
Cash Earning Retention Ratio (%)	0.00	97.35	93.50	96.47	93.52
Interest Coverage Ratio (X)	8.13	16.58	31.87	33.56	20.79
Interest Coverage Ratio (Post Tax) (X)	4.83	10.24	18.78	21.90	11.44
Enterprise Value (Cr.)	11257.54	7783.15	8280.28	8079.39	4160.27
EV / Net Operating Revenue (X)	2.50	1.73	2.20	2.50	1.60
EV / EBITDA (X)	13.08	8.39	11.19	9.16	7.40
MarketCap / Net Operating Revenue (X)	2.31	1.56	2.02	2.32	1.40
Retention Ratios (%)	0.00	96.39	90.99	95.49	90.86
Price / BV (X)	3.23	2.48	2.94	3.46	1.98
Price / Net Operating Revenue (X)	2.31	1.56	2.02	2.32	1.40
EarningsYield	0.03	0.07	0.05	0.07	0.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹605.49

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 11.99% compared to the current price ₹688.00

Intrinsic Value: 631.44

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 8.22% compared to the current price ₹688.00

Last 5 Year EPS CAGR: 4.29%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 17.50%, which is a positive sign. The company has higher reserves (1,487.25 cr) compared to borrowings (813.17 cr), indicating strong financial stability. The company has shown consistent growth in sales (110.62 cr) and profit (323.00 cr) over the years.	The stock has a high average Working Capital Days of 101.92, which may not be favorable. The stock has a high average Cash Conversion Cycle of 121.67, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Granules India Ltd:
1. Net Profit Margin: 8.99%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 18.99% (Industry Average ROCE: 0%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 12.56% (Industry Average ROE: 0%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 4.83
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.77
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 33.9 (Industry average Stock P/E: 0)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.37
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Granules India Ltd. is a Public Limited Listed company incorporated on 18/03/1991 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L24110TG1991PLC012471 and registration number is 012471. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 3238.44 Cr. and Equity Capital is Rs. 24.80 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	2nd Floor, 3rd Block, My Home Hub, Hyderabad Telangana 500081	investorrelations@granulesindia.com http://www.granulesindia.com

Management
Name	Position Held
Mr. Krishna Prasad Chigurupati	Chairman & Managing Director
Dr. K V S Ram Rao	Joint Managing Director & CEO
Mr. Harsha Chigurupati	Executive Director
Mrs. Uma Devi Chigurupati	Executive Director
Mr. K B Sankar Rao	Non Exe.Non Ind.Director
Dr. Saumen Chakraborty	Ind. Non-Executive Director
Mrs. Sucharita Rao Palepu	Ind. Non-Executive Director
Mr. Arun Rao Akinepally	Ind. Non-Executive Director
Mr. Arun Sawhney	Ind. Non-Executive Director
Mr. Kapil Kumar Mehan	Ind. Non-Executive Director

FAQ

What is the latest fair value of Granules India Ltd?

The latest fair value of Granules India Ltd is ₹605.49.

What is the Market Cap of Granules India Ltd?

The Market Cap of Granules India Ltd is 16,677 Cr..

What is the current Stock Price of Granules India Ltd as on 08 September 2024?

The current stock price of Granules India Ltd as on 08 September 2024 is 688.

What is the High / Low of Granules India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Granules India Ltd stocks is 725/306.

What is the Stock P/E of Granules India Ltd?

The Stock P/E of Granules India Ltd is 33.9.

What is the Book Value of Granules India Ltd?

The Book Value of Granules India Ltd is 133.

What is the Dividend Yield of Granules India Ltd?

The Dividend Yield of Granules India Ltd is 0.22 %.

What is the ROCE of Granules India Ltd?

The ROCE of Granules India Ltd is 15.4 %.

What is the ROE of Granules India Ltd?

The ROE of Granules India Ltd is 13.4 %.

What is the Face Value of Granules India Ltd?

The Face Value of Granules India Ltd is 1.00.