Granules India Q4 Results Review - Higher Finished Dosage Sales Drives Earnings: Dolat Capital

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Granules India Ltd.'s Q4 FY24 results were above our estimates mainly on account of better than expected gross margin led by higher finished dosage sales and lower raw material costs, while sales were in-line. Granules India expects to launch 14 new products in the US, Europe and other rest of world markets in FY25; Guided gross margin of ~55-58%. Paracetamol prices are expected to stabilize by FY26.We upgrade our FY25E/FY26E Ebitda estimates by 2.4%/1.2% on assuming higher gross margin which will lead to higher Ebitda margin profile led by-significant shift towards high-value products, with finished dosage segment's contribution rising to 70% (50% in FY23 and 65% in FY24) in the medium term anddecline in contribution from core molecules with high volume low value products with new product launches. Maintain ‘Accumulate’ rating with target price of Rs 459 (earlier Rs 460) at 15 times FY26 price/earnings. Key risks: Compliance issue on any facility, higher input cost..Click on the attachment to read the full report:.Granules India Q4 Results: Profit Rises 8%, Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Granules India Q4 Results Review - Higher Finished Dosage Sales Drives Earnings: Dolat Capital

Lower demand impacts active pharma ingredient and pharmaceutical formulation intermediate sales

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Lower demand impacts active pharma ingredient and pharmaceutical formulation intermediate sales

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