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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Granules India Ltd

About the Company - Granules India Ltd

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

Granules India Ltd. Share Price Update

Share PriceValue
Today₹422.05
Previous Day₹419.85

Basic Stock Data of Granules India Ltd

Market Cap 11,273 Cr.
Current Price 465
High / Low480/268
Stock P/E28.5
Book Value 122
Dividend Yield0.32 %
ROCE19.4 %
ROE19.1 %
Face Value 1.00

Data Source: screener.in

Granules India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8588457998508889971,0301,0201,1511,1461,1969861,189
Expenses602633597648737823837808908915967849977
Operating Profit256212202201151174193212243231228137213
OPM %30%25%25%24%17%17%19%21%21%20%19%14%18%
Other Income31638454551302
Interest677755671317192226
Depreciation36374439403940434448494953
Profit before tax21718415416311013515016619016716465136
Tax %25%20%17%26%27%25%26%23%24%26%27%27%25%
Net Profit1641471281208110111112814512412048102
EPS in Rs6.615.935.154.853.264.074.485.145.845.144.941.984.21

Granules India Ltd Quarterly Chart

Granules India Ltd Profit & Loss

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%

Granules India Ltd Profit & Loss Yearly Chart

Granules India Ltd Growth

Compounded Sales Growth
10 Years:19%
5 Years:22%
3 Years:20%
TTM:4%
Compounded Profit Growth
10 Years:32%
5 Years:31%
3 Years:18%
TTM:-22%
Stock Price CAGR
10 Years:33%
5 Years:35%
3 Years:11%
1 Year:64%
Return on Equity
10 Years:20%
5 Years:20%
3 Years:21%
Last Year:19%

Granules India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital20202020222325252525252424
Reserves2252553364116408811,2791,5041,8182,1492,5622,8112,943
Borrowings2042704424826416569789918928491,1061,1361,380
Other Liabilities123137194289260319388458487690819932918
Total Liabilities5716839921,2031,5631,8792,6702,9793,2233,7134,5124,9035,265
Fixed Assets2502634826175606447779441,2041,3321,5411,9112,063
CWIP291091256277267515496294239356239219
Investments01000701081572101919202121
Other Assets2913013855248568591,2221,3281,7062,1232,5942,7322,961
Total Assets5716839921,2031,5631,8792,6702,9793,2233,7134,5124,9035,265

Granules India Ltd Reserves and Borrowings Chart

Granules India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2691108150151188-1262476432332739
Cash from Investing Activity -54-128-255-146-162-326-462-270-160-277-379-192
Cash from Financing Activity 4946147198656529-17-213-299190-440
Net Cash Flow201002475-8266-25103-144143107

Granules India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days5334373910110813610893869077
Inventory Days9710799110128145114112125205190182
Days Payable677277929111611294102142124124
Cash Conversion Cycle83695957138137138126116150156135
Working Capital Days65564841115120156120116109119102
ROCE %15%13%20%19%20%18%12%15%17%25%17%19%

Granules India Ltd Financial Efficiency Indicators Chart

Granules India Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters42.04%42.04%42.04%42.04%41.98%41.98%41.98%42.02%42.02%42.02%42.02%41.97%
FIIs26.38%23.11%18.35%21.18%21.38%23.19%23.13%22.66%23.66%23.90%21.35%21.48%
DIIs0.32%1.50%2.86%2.77%4.34%3.98%3.03%4.22%4.75%5.03%6.68%7.06%
Public31.27%33.36%36.76%34.01%32.30%30.85%31.85%31.10%29.56%29.05%29.95%29.51%
No. of Shareholders1,58,3931,93,8712,61,1652,39,5202,16,3852,10,7852,14,5392,02,3291,90,8941,87,7772,01,0542,07,055

Granules India Ltd Shareholding Pattern Chart

No. of Granules India Ltd Shareholders

Granules India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Aditya Birla Sun Life Pure Value Fund25464921.7682.99
Quant Small Cap Fund14328940.4946.7
SBI Arbitrage Opportunities Fund7760000.1125.29
Quant Tax Plan7200000.4723.46
Kotak Equity Arbitrage Fund - Regular Plan6560000.0721.38
HSBC Arbitrage Fund4280000.7913.95
Quant Business Cycle Fund4250002.1613.85
Quant Active Fund4200000.2313.69
UTI Arbitrage Fund3320000.2910.82
Quant Flexi Cap Fund3300000.510.75

Granules India Ltd ROCE Trend

Granules India Ltd EPS Trend

Granules India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)21.0516.6622.0513.199.30
Diluted EPS (Rs.)21.0016.6021.9513.159.28
Cash EPS (Rs.)28.9723.0428.3017.5811.53
Book Value[Excl.RevalReserv]/Share (Rs.)117.13104.3287.7572.5260.16
Book Value[Incl.RevalReserv]/Share (Rs.)117.13104.3287.7572.5260.16
Revenue From Operations / Share (Rs.)186.41151.81130.72102.2189.64
PBDIT / Share (Rs.)38.3229.8335.6222.1016.15
PBIT / Share (Rs.)30.7023.4429.5016.7112.01
PBT / Share (Rs.)28.3922.5028.4416.7410.89
Net Profit / Share (Rs.)21.3416.6422.1812.197.38
NP After MI And SOA / Share (Rs.)21.3416.6422.1813.199.30
PBDIT Margin (%)20.5519.6527.2421.6218.02
PBIT Margin (%)16.4615.4322.5616.3513.39
PBT Margin (%)15.2314.8221.7516.3712.14
Net Profit Margin (%)11.4410.9616.9711.928.23
NP After MI And SOA Margin (%)11.4410.9616.9712.9010.37
Return on Networth / Equity (%)18.2215.9525.2818.1915.45
Return on Capital Employeed (%)24.0420.2428.7618.1914.63
Return On Assets (%)10.539.1414.7910.387.92
Long Term Debt / Equity (X)0.050.090.150.220.31
Total Debt / Equity (X)0.370.420.380.430.61
Asset Turnover Ratio (%)0.870.800.900.750.76
Current Ratio (X)1.421.531.701.821.43
Quick Ratio (X)0.780.921.041.331.00
Inventory Turnover Ratio (X)2.672.723.343.444.43
Dividend Payout Ratio (NP) (%)3.609.004.509.1312.96
Dividend Payout Ratio (CP) (%)2.656.503.536.488.96
Earning Retention Ratio (%)96.4091.0095.5090.8787.04
Cash Earning Retention Ratio (%)97.3593.5096.4793.5291.04
Interest Coverage Ratio (X)16.5831.8733.5620.7914.43
Interest Coverage Ratio (Post Tax) (X)10.2418.7821.9011.447.59
Enterprise Value (Cr.)7783.158280.288079.394160.273750.00
EV / Net Operating Revenue (X)1.732.202.501.601.65
EV / EBITDA (X)8.3911.199.167.409.13
MarketCap / Net Operating Revenue (X)1.562.022.321.401.27
Retention Ratios (%)96.3990.9995.4990.8687.03
Price / BV (X)2.482.943.461.981.90
Price / Net Operating Revenue (X)1.562.022.321.401.27
EarningsYield0.070.050.070.090.08

Granules India Ltd Profitability Ratios (%)

Granules India Ltd Liquidity Ratios

Granules India Ltd Liquidity Ratios (%)

Granules India Ltd Interest Coverage Ratios (%)

Granules India Ltd Valuation Ratios

Fair Value of Granules India Ltd Stock

Fair Value: ₹666.23

The stock is undervalued by 43.28% compared to the current price ₹465

*Investments are subject to market risks

Strength and Weakness of Granules India Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 17.50%, which is a positive sign.
  2. The company has higher reserves (1,370.31 cr) compared to borrowings (771.31 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 is trading at a high valuation with an average P/B ratio of 22.47 and average Dividend Yield of 16.84%.
  2. The stock has a high average Working Capital Days of 97.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 113.67, which may not be favorable.

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