Granules India reported a 52 % rise in top line and an 87 % jump in net profit for the quarter ended September compared with same period of last year. Half year EPS is close to Rs.15 which is almost equal to last full year EPS .Management expressed their confidence in attaining more customer approvals in the second half which will help the company to scale up the business further.
Company closed down its Singapore subsidiary which is a dormant one and not commenced any activity so far with a Share Capital of the just Rs.5 lakhs. No negative impact on that account.
In addition to this ,today India Government imposed an anti dumping duty of Rs.50000 ( approx) per ton on the imported paracetamol from China , which will indirectly help the company . ( Read the news HERE )
In addition to the ongoing capacity expansions for existing products ,Company's new joint venture with Belgium based Ajinomoto Omnichem for producing high margin niche API's are expected to start functioning at the end of next financial year.
At the time of June quarter result I recommended a BUY around Rs.140 level for those having some risk appetite .( Originally recommended @ Rs.79 HERE ) .Now raising the buy price to Rs.160 and recommending a HOLD at CMP for long term for further gain.
Disc: I have vested interest in GIL