⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GRANULES - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | GRANULES | Market Cap | 14,217 Cr. | Current Price | 586 ₹ | High / Low | 627 ₹ |
| Stock P/E | 37.1 | Book Value | 146 ₹ | Dividend Yield | 0.26 % | ROCE | 10.9 % |
| ROE | 9.14 % | Face Value | 1.00 ₹ | DMA 50 | 577 ₹ | DMA 200 | 553 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | 0.60 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 121 Cr. |
| RSI | 53.8 | MACD | -0.62 | Volume | 10,55,520 | Avg Vol 1Wk | 7,28,032 |
| Low price | 412 ₹ | High price | 627 ₹ | PEG Ratio | -4.31 | Debt to equity | 0.29 |
| 52w Index | 80.6 % | Qtr Profit Var | 23.8 % | EPS | 16.3 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Quarterly PAT declined from ₹121 Cr. to ₹112 Cr., showing short-term weakness.
- ROCE at 10.9% and ROE at 9.14% → modest efficiency compared to peers.
- Debt-to-equity ratio of 0.29 → manageable leverage.
- Cash flows supported by pharmaceutical manufacturing but margins remain under pressure.
💹 Valuation Indicators
- P/E Ratio: 37.1 vs Industry PE of 27.6 → trading at a premium.
- P/B Ratio: ~4.0x (₹586 / ₹146) → moderate valuation.
- PEG Ratio: -4.31 → negative, indicating weak growth expectations.
- Intrinsic Value: Current price above fair zone, reflecting optimism in pharma sector.
🏢 Business Model & Competitive Advantage
- Pharmaceutical company with focus on APIs and formulations.
- Global presence provides diversification and export opportunities.
- Efficiency metrics lag industry leaders, limiting competitive edge.
📈 Technical & Entry Zone
- Current Price: ₹586, near 50 DMA (₹577) and above 200 DMA (₹553).
- RSI: 53.8 → neutral zone.
- MACD: -0.62 → mild bearish momentum.
- Entry Zone: Attractive accumulation between ₹540–₹560.
- Long-Term Holding: Suitable for cautious investors with 3–5 year horizon.
✅ Positive
- Debt levels remain manageable.
- DII holdings increased by 0.60%, showing institutional support.
- EPS of ₹16.3 reflects profitability despite margin pressures.
⚠️ Limitation
- Quarterly profit decline raises concerns.
- Negative PEG ratio indicates weak growth visibility.
- ROE and ROCE below industry averages.
📉 Company Negative News
- Decline in FII holdings (-0.30%).
- Stock corrected from 52-week high of ₹627.
📈 Company Positive News
- DII inflows indicate domestic institutional confidence.
- Strong 52-week performance index (80.6%) shows investor interest.
🏭 Industry
- Pharmaceutical sector supported by global demand and healthcare expansion.
- Industry PE at 27.6 indicates moderate investor optimism.
🔎 Conclusion
GRANULES is a pharmaceutical company with global presence and manageable debt, but currently trading at premium valuations.
Weak efficiency metrics and negative PEG ratio suggest limited growth visibility.
Best accumulated around ₹540–₹560 for cautious investors with a 3–5 year horizon, while monitoring profitability trends.