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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Granules India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:13 am

Market Cap 14,019 Cr.
Current Price 578
High / Low725/319
Stock P/E28.5
Book Value 133
Dividend Yield0.26 %
ROCE15.4 %
ROE13.4 %
Face Value 1.00
PEG Ratio6.65

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

View Share Price Target for Granules India Ltd

Competitors of Granules India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Granules India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8457998508889971,0301,0201,1511,1461,1969861,1891,156
Expenses633597648737823837808908915967849977905
Operating Profit212202201151174193212243231228137213250
OPM %25%25%24%17%17%19%21%21%20%19%14%18%22%
Other Income16384545513021
Interest7775567131719222629
Depreciation37443940394043444849495352
Profit before tax18415416311013515016619016716465136170
Tax %20%17%26%27%25%26%23%24%26%27%27%25%26%
Net Profit1471281208110111112814512412048102126
EPS in Rs5.935.154.853.264.074.485.145.845.144.941.984.215.18

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6547611,0841,2921,3571,4111,6852,2792,5993,2383,7654,5124,517
Expenses5756769251,0821,0811,1121,4061,8952,0732,3823,0383,5973,707
Operating Profit7986159210276299278384526856727915809
OPM %12%11%15%16%20%21%17%17%20%26%19%20%18%
Other Income11435352775902613126
Interest17182032373233282726235684
Depreciation21233053587276105137151159184199
Profit before tax4346112128186230196326451704558687532
Tax %30%30%33%29%33%28%32%27%26%22%26%25%
Net Profit30337591123165133236335549413517394
EPS in Rs1.491.623.714.455.687.195.229.3013.1922.1816.6421.3416.27
Dividend Payout %13%12%9%11%11%13%19%11%8%7%9%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
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%

Granules India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

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:22%
5 Years:43%
3 Years:22%
1 Year:70%
Return on Equity
10 Years:18%
5 Years:19%
3 Years:17%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital202020222325252525252424
Reserves2553364116408811,2791,5041,8182,1492,5622,8113,201
Borrowings2704424826416569789918928491,1061,1361,315
Other Liabilities137194289260319388458487690819932957
Total Liabilities6839921,2031,5631,8792,6702,9793,2233,7134,5124,9035,498
Fixed Assets2634826175606447779441,2041,3321,5411,9112,096
CWIP1091256277267515496294239356239272
Investments1000701081572101919202122
Other Assets3013855248568591,2221,3281,7062,1232,5942,7323,109
Total Assets6839921,2031,5631,8792,6702,9793,2233,7134,5124,9035,498

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 91108150151188-1262476432332739439
Cash from Investing Activity -128-255-146-162-326-462-270-160-277-379-192-358
Cash from Financing Activity 46147198656529-17-213-299190-4408
Net Cash Flow1002475-8266-25103-14414310790

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow79.00-184.00-283.00-272.00-365.00-357.00-700.00-607.00-366.007.00726.00914.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days3437391011081361089386907780
Inventory Days10799110128145114112125205190182235
Days Payable7277929111611294102142124124135
Cash Conversion Cycle695957138137138126116150156135179
Working Capital Days564841115120156120116109119102121
ROCE %13%20%19%20%18%12%15%17%25%17%19%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters42.04%41.98%41.98%41.98%41.93%42.02%42.02%42.02%41.97%41.97%41.96%38.87%
FIIs21.18%21.38%23.19%23.13%22.35%23.66%23.90%21.35%21.48%18.78%19.57%20.39%
DIIs2.77%4.34%3.98%3.03%4.32%4.75%5.03%6.68%7.06%10.16%10.70%14.11%
Public34.01%32.30%30.85%31.85%31.40%29.56%29.05%29.95%29.51%29.10%27.77%26.61%
No. of Shareholders2,39,5202,16,3852,10,7852,14,5392,16,0551,90,8941,87,7772,01,0542,07,0551,90,6911,82,1421,79,870

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Pure Value Fund2,546,4921.7682.99420,0002024-10-09506.31%
Quant Small Cap Fund1,432,8940.4946.7420,0002024-10-09241.17%
SBI Arbitrage Opportunities Fund776,0000.1125.29420,0002024-10-0984.76%
Quant Tax Plan720,0000.4723.46420,0002024-10-0971.43%
Kotak Equity Arbitrage Fund - Regular Plan656,0000.0721.38420,0002024-10-0956.19%
HSBC Arbitrage Fund428,0000.7913.95420,0002024-10-091.9%
Quant Business Cycle Fund425,0002.1613.85420,0002024-10-091.19%
Quant Active Fund420,0000.2313.69420,0002024-10-090%
UTI Arbitrage Fund332,0000.2910.82420,0002024-10-09-20.95%
Quant Flexi Cap Fund330,0000.510.75420,0002024-10-09-21.43%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)16.7321.0516.6622.0513.19
Diluted EPS (Rs.)16.7221.0016.6021.9513.15
Cash EPS (Rs.)25.2828.9723.0428.3017.58
Book Value[Excl.RevalReserv]/Share (Rs.)133.08117.13104.3287.7572.52
Book Value[Incl.RevalReserv]/Share (Rs.)133.08117.13104.3287.7572.52
Revenue From Operations / Share (Rs.)185.93186.41151.81130.72102.21
PBDIT / Share (Rs.)35.5038.3229.8335.6222.10
PBIT / Share (Rs.)26.9430.7023.4429.5016.71
PBT / Share (Rs.)22.5828.3922.5028.4416.74
Net Profit / Share (Rs.)16.7221.3416.6422.1812.19
NP After MI And SOA / Share (Rs.)16.7221.3416.6422.1813.19
PBDIT Margin (%)19.0920.5519.6527.2421.62
PBIT Margin (%)14.4916.4615.4322.5616.35
PBT Margin (%)12.1415.2314.8221.7516.37
Net Profit Margin (%)8.9911.4410.9616.9711.92
NP After MI And SOA Margin (%)8.9911.4410.9616.9712.90
Return on Networth / Equity (%)12.5618.2215.9525.2818.19
Return on Capital Employeed (%)18.9924.0420.2428.7618.19
Return On Assets (%)7.3410.539.1414.7910.38
Long Term Debt / Equity (X)0.020.050.090.150.22
Total Debt / Equity (X)0.370.370.420.380.43
Asset Turnover Ratio (%)0.860.870.800.900.75
Current Ratio (X)1.401.421.531.701.82
Quick Ratio (X)0.770.780.921.041.33
Inventory Turnover Ratio (X)1.802.672.723.343.44
Dividend Payout Ratio (NP) (%)0.003.609.004.509.13
Dividend Payout Ratio (CP) (%)0.002.656.503.536.48
Earning Retention Ratio (%)0.0096.4091.0095.5090.87
Cash Earning Retention Ratio (%)0.0097.3593.5096.4793.52
Interest Coverage Ratio (X)8.1316.5831.8733.5620.79
Interest Coverage Ratio (Post Tax) (X)4.8310.2418.7821.9011.44
Enterprise Value (Cr.)11257.547783.158280.288079.394160.27
EV / Net Operating Revenue (X)2.501.732.202.501.60
EV / EBITDA (X)13.088.3911.199.167.40
MarketCap / Net Operating Revenue (X)2.311.562.022.321.40
Retention Ratios (%)0.0096.3990.9995.4990.86
Price / BV (X)3.232.482.943.461.98
Price / Net Operating Revenue (X)2.311.562.022.321.40
EarningsYield0.030.070.050.070.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Granules India Ltd as of October 11, 2024 is: ₹509.25

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.

As of October 11, 2024, Granules India Ltd is Overvalued by 11.89% compared to the current share price ₹578.00

Intrinsic Value of Granules India Ltd as of October 11, 2024 is: ₹531.08

Calculation basis:

  • Intrinsic 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.

As of October 11, 2024, Granules India Ltd is Overvalued by 8.12% compared to the current share price ₹578.00

Last 5 Year EPS CAGR: 4.29%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.50%, which is a positive sign.
  2. The company has higher reserves (1,487.25 cr) compared to borrowings (813.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (110.62 cr) and profit (323.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 101.92, which may not be favorable.
  2. 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: 0.59%)
      • 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: 0.49%)
      • 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: 28.5 (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.
INDUSTRYADDRESSCONTACT
Pharmaceuticals2nd Floor, 3rd Block, My Home Hub, Hyderabad Telangana 500081investorrelations@granulesindia.com
http://www.granulesindia.com
Management
NamePosition Held
Mr. Krishna Prasad ChigurupatiChairman & Managing Director
Dr. K V S Ram RaoJoint Managing Director & CEO
Mr. Harsha ChigurupatiExecutive Director
Mrs. Uma Devi ChigurupatiExecutive Director
Mr. K B Sankar RaoNon Exe.Non Ind.Director
Dr. Saumen ChakrabortyInd. Non-Executive Director
Mrs. Sucharita Rao PalepuInd. Non-Executive Director
Mr. Arun Rao AkinepallyInd. Non-Executive Director
Mr. Arun SawhneyInd. Non-Executive Director
Mr. Kapil Kumar MehanInd. Non-Executive Director

FAQ

What is the latest fair value of Granules India Ltd?

The latest fair value of Granules India Ltd is ₹509.25.

What is the Market Cap of Granules India Ltd?

The Market Cap of Granules India Ltd is 14,019 Cr..

What is the current Stock Price of Granules India Ltd as on 11 October 2024?

The current stock price of Granules India Ltd as on 11 October 2024 is ₹578.

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 725/319.

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

The Stock P/E of Granules India Ltd is 28.5.

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 0.26 %.

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.

About the Author

Author Avatar
Getaka

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