Buy Granules India, target price Rs 340: ICICI Direct
Synopsis
Granules’ share price has been in a corrective phase for past six months and underwent a healthy base formation in past 12 weeks, thus offering fresh entry opportunity with decent risk-reward setup.
Granules India key Products/Revenue Segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1147.07 Crore, down -.73 % from last quarter Total Income of Rs 1155.52 Crore and up 14.52 % from last year same quarter Total Income of Rs 1001.64 Crore. Company has reported net profit after tax of Rs 124.33 Crore in latest quarter.
The company’s top management includes Mr.Krishna Prasad Chigurupati, Dr.Saumen Chakraborty, Mr.Robert George Cunard, Mr.Arun Sawhney, Mr.Arun Rao Akinepally, Mr.K B Sankar Rao, Mr.Harsha Chigurupati, Mrs.Uma Devi Chigurupati, Dr.K V S Ram Rao, Mrs.Sucharita Rao Palepu. Company has B S R & Associates LLP as its auditors. As on 31-03-2023, the company has a total of 24 Crore shares outstanding.
Investment Rationale
Pharma stocks have been in the limelight since the beginning of April after being out of favour for several months as the risk-reward turned favourable. Granules’ share price has been in a corrective phase for past six months and underwent a healthy base formation in past 12 weeks, thus offering fresh entry opportunity with decent risk-reward setup.
Promoter/FII Holdings
Promoters held 42.02 per cent stake in the company as of 31-Mar-2023, while FIIs owned 23.9 per cent, DIIs 5.03 per cent.