Granules India Q3 Results Review - Paracetamol Led Earnings Growth For The Quarter: Motilal Oswal
Favorable demand-supply consistency exhibited by Granules would enable a sustained off-take of paracetamol by its customers.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Granules India ltd. delivered operationally in-line Q3 FY23, led by robust traction in paracetamol (sales up 37% YoY). Favorable demand-supply consistency exhibited by Granules India would enable a sustained off-take of paracetamol by its customers in the coming quarters.
We cut our earnings per share estimates by 3%/5%/3% for FY23/FY24/FY25, respectively, to factor in:
an ongoing price erosion in the non-core molecules,
gradual traction in new launches, and
increased operational cost.
Granules India is working on multiple fronts –
differentiated product development coupled with supportive manufacturing capability/capacity,
backward integration for key raw materials,
strategic partnership with Greenko for carbon-free energy, green hydrogen and other chemical derivatives.
Accordingly, we factor in 19% earnings compound annual growth rate over FY23-25E.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.