GRANULES - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

📊 Core Financials & Profitability

EPS (₹20.7) with PAT rising modestly from ₹118 Cr to ₹131 Cr — stable earnings profile.

ROCE (15.1%) & ROE (13.9%) — commendable capital efficiency, above real asset-heavy peers.

Debt-to-Equity (0.39) — healthy leverage, indicating prudent borrowing.

Dividend Yield (0.31%) — negligible, suggesting reinvestment strategy or growth focus.

Quarter-on-quarter growth is flat (0.96%), but overall metrics imply a financially sound business with reliable margins.

📈 Valuation Metrics

Metric Value Observation

P/E Ratio 24.8 Reasonable versus industry PE (34.0) — slightly undervalued

P/B Ratio ~3.20 Fair considering steady earnings and expanding book value

PEG Ratio 5.01 Elevated — implies valuation not justified by recent growth

Intrinsic Value — Estimated range ₹450–₹470 — near current price

Not overtly cheap, but valuation supports accumulation if growth resumes.

🧪 Business Model & Competitive Advantage

Segment: Pharmaceuticals — operates in manufacturing APIs and finished dosages.

Edge

Strong export portfolio — particularly to the US and Europe.

Integrated supply chain — controls cost and delivery timelines.

Concerns

FII Holdings ↓ 1.9% — some exit from foreign institutions.

Flat profit growth — could affect PEG and future valuations.

Low dividend — conservative payout may deter income-seeking investors.

📉 Technical Indicators & Entry Zone

Current Price: ₹490

DMA 50 / DMA 200: ₹492 / ₹510 — near support; potential bounce zone

RSI (51.5): Neutral — neither overbought nor oversold

MACD (-5.44): Mild bearish divergence — wait for confirmation

Volume spike vs 1-week average — potential accumulation underway

🛒 Suggested Entry Zone: ₹460–₹480 Ideal entry would be post-consolidation or MACD reversal. Watch price action near ₹470.

🧭 Long-Term Outlook

Positioned to benefit from global generic drug demand, especially post-COVID restocking.

Risks include regulatory challenges and margin pressure in exports.

If EPS compounds steadily and PEG normalizes <2, rerating is possible.

Want a peer comparison with Divi’s Labs or Aurobindo Pharma? I can break it down across margin resilience, export exposure, and valuation multiples. Let’s map it out sector-wide 💊📉

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