Saturday, March 24, 2012

GRANULES INDIA LTD - BUY







Granules India is  Hyderabad based integrated pharmaceutical outsourcing manufacturer mainly in Active Pharmaceutical Ingredients (API), Pharmaceutical Formulations Intermediates(PFI) and  Finished Dosages (FD ). Company having three API manufacturing facilities located in Bonthapally,and  Jeedimetla  in Andhra Pradesh and Hubei in China.All these three facilities are approved by USFDA and other authorities like WHO ,EDQM..etc. Its API portfolio includes Paracetamol ,Ibuprofen,Metformin HCl,Guaifenesin,Methocarbamo,Oxymetazoline and Phenazopyridine HCl. Granules’ PFI facilities are located at Gagillapur and Jeedimetla both in Andhra Pradesh. Company also have six billion tablect capacity FD plant in Gagillapur. Company having strong outsourcing tie-ups with world pharma majors. Now company is moving gradually to high margin PFI and Fd segment from API .Last year Granules expanded its capacity in both these segments. Company having good R&D and got approvals for two ANDA’s in last year.Outside India, company having marketing presence in US,China,UK and Colombia.After receiving recent FDA approvals and capacity expansion company is expected to perform well going forward.Last FY , Granules posted a turnover of Rs.475 Cr and a net profit of Rs.21 Cr .With the aggressive expansion ,marketing initiatives,and introduction of new products and favorable exchange value ( about 80% of sales coming from exports.) Granules is expected to  post decent growth in coming years.It is one of the good pharma picks from small cap space at CMP of Rs.79/-

25 comments :

  1. Hi,

    Any idea on ICSA (India) Ltd.

    ReplyDelete
  2. Your recommendation Cochin Minerals rutile & Pitti lamination are making new highs. Please advice whether to book profit or hold.

    ReplyDelete
  3. Skeptical about the management of ICSA

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  4. Dear Sir,

    Recently Empee Distillaries has annoounced its merger with Empee Sugars, can you shed some light if this would be benificial in long term (i hold 300 @ 140/-)

    ReplyDelete
    Replies
    1. Dear Raghav

      I am tracking any company from Empee group , so not in a position to answer

      Delete
  5. Dear Sir,

    As soon as your recommendation publish in value pick site, the next day the share price is zooming. It is crazy and shares are not available at your recm price and we are in doubt whether to buy or wait till the price comes to ur suggestion.Plz suggest,and thanks for your valueble suggestions all the time.

    regards,
    M Phani

    ReplyDelete
  6. Dear Phani

    It is a difficult question to answer and I have no control in price movements.It depends on the nature of investors.If the initial buyers are looking only for short term gains the scrip may come down in next few days due to their profit booking.On the other side if the majority of shares bought by long term investors it may not come down. So.. what to say .... try to buy around the recommended price or below :)

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  7. can u comment on tata investment,can i buy at cmp for long term

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    Replies
    1. Not bad , but may test your patience.

      Delete
  8. Dear VP,

    Your views about Astrazeneca and Elantas Beck Please.

    Thanks,
    Ravi

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    Replies
    1. Hold Astra Zeneca, Not tracking Elantas Beck

      Delete
  9. Sir,
    I purchased kfa last year. Shall I average here?
    I can hold it for next 5 years.
    Please guide.

    ReplyDelete
  10. Not advising to take that much risk

    ReplyDelete
  11. as per ur recommendation i purchstased gorderj industries at 185 how long it should be hold i am ready to hold for 5 yrs

    ReplyDelete
    Replies
    1. How long depends on the growth of the company

      Delete
  12. Dear Sir,
    I am having Britannia (Avg price: 579), Tokyo (Avg Price: 23.77) and Suzlon(Avt Price:28.90). As per the CMP I am having 12% LOSS. Will it be a wise decision to book the loss in these script and buy Ahlcon for the target of Rs. 460/.
    Please suggest. Thanks in advance.
    Neha

    ReplyDelete
    Replies
    1. I have not recommended the mentioned scrips at your purchase rate which is far above.

      Delete
  13. Dear VP Sir,

    what is your opinion about Jindal drilling at CMP301/-, could you please suggest prospectus of the company.

    regards,

    Prasad

    ReplyDelete
  14. Hello
    I have bought camlin fine @60. Pl advise whether to hold or sell

    ReplyDelete
  15. HI

    Is it advisable to buy APPAPER at this levels.stock is zooming in falling markets also. pls advice.

    SRINIVS

    ReplyDelete
  16. I have brought MM Forgings @ 237 . What is your take on the stock should I hold further or book profit

    ReplyDelete
  17. Sir
    i have valaint communications @134 and its goin down whether to hold or exit.

    ReplyDelete

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