Stock P/E, Current Price, and Intrinsic Value Over Time
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.
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:
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.
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.
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.
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.
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.
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.
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
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Granules India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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