BSE:532482

Stock Analysis Report

Executive Summary

Granules India Limited manufactures and sells active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates, and finished dosages (FDs) in India and internationally.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.

Share Price & News

How has Granules India's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

18.9%

532482

4.1%

IN Pharmaceuticals

2.3%

IN Market


1 Year Return

25.4%

532482

-13.2%

IN Pharmaceuticals

7.4%

IN Market

Return vs Industry: 532482 exceeded the Indian Pharmaceuticals industry which returned -13.2% over the past year.

Return vs Market: 532482 exceeded the Indian Market which returned 7.4% over the past year.


Shareholder returns

532482IndustryMarket
7 Day18.9%4.1%2.3%
30 Day8.2%-2.4%0.9%
90 Day35.9%-0.5%3.7%
1 Year26.7%25.4%-12.5%-13.2%9.7%7.4%
3 Year-2.7%-5.3%-23.5%-25.1%23.0%16.6%
5 Year45.3%39.9%-10.1%-12.8%42.1%28.5%

Price Volatility Vs. Market

How volatile is Granules India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Granules India undervalued compared to its fair value and its price relative to the market?

9.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532482 (₹115.55) is trading above our estimate of fair value (₹101.36)

Significantly Below Fair Value: 532482 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532482 is good value based on its PE Ratio (9.7x) compared to the Pharmaceuticals industry average (16x).

PE vs Market: 532482 is good value based on its PE Ratio (9.7x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 532482 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 532482 is overvalued based on its PB Ratio (1.7x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Granules India forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532482's forecast earnings growth (13.6% per year) is above the savings rate (7.6%).

Earnings vs Market: 532482's earnings (13.6% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: 532482's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532482's revenue (11.8% per year) is forecast to grow faster than the Indian market (11.2% per year).

High Growth Revenue: 532482's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532482's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has Granules India performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532482's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: 532482's earnings growth over the past year (81.1%) exceeds its 5-year average (21.5% per year).

Earnings vs Industry: 532482 earnings growth over the past year (81.1%) exceeded the Pharmaceuticals industry 14.2%.


Return on Equity

High ROE: 532482's Return on Equity (17.8%) is considered low.


Return on Assets

ROA vs Industry: 532482 has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 532482's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Granules India's financial position?


Financial Position Analysis

Short Term Liabilities: 532482's short term assets (₹15.7B) exceeds its short term liabilities (₹9.6B)

Long Term Liabilities: 532482's short term assets (15.7B) exceeds its long term liabilities (5.1B)


Debt to Equity History and Analysis

Debt Level: 532482's debt to equity ratio (49.4%) is considered high

Reducing Debt: 532482's debt to equity ratio has reduced from 110.4% to 49.4% over the past 5 years.

Debt Coverage: 532482's debt is well covered by operating cash flow (44.2%).

Interest Coverage: 532482's interest payments on its debt are well covered by EBIT (23.9x coverage).


Balance Sheet

Inventory Level: 532482 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532482's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Granules India's current dividend yield, its reliability and sustainability?

0.86%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 532482's dividend (0.87%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 532482's dividend (0.87%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: 532482's dividends per share have been stable in the past 10 years.

Growing Dividend: 532482's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.4%), 532482's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Granules India's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Krishna Chigurupati (65yo)

10.1yrs

Tenure

₹149,904,000

Compensation

Mr. Krishna Prasad Chigurupati, B.Sc. has been Managing Director of Granules India Limited since September 1, 2009. Mr. Chigurupati serves as Chairman of Granules India Limited and has been its Non-Indepen ...


CEO Compensation Analysis

Compensation vs. Market: Krishna's total compensation ($USD2.12M) is about average for companies of similar size in the Indian market ($USD325.97K).

Compensation vs Earnings: Krishna's compensation has increased by more than 20% in the past year.


Management Age and Tenure

7.3yrs

Average Tenure

56yo

Average Age

Experienced Management: 532482's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

60yo

Average Age

Experienced Board: 532482's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹1,150,08003 Jun 19
Stefan Corredor
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer
Shares32,000
Max Price₹35.94
Sell₹2008 Apr 19
Stefan Corredor
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer
Shares18,400
Max Price₹0.0011
Sell₹1521 Mar 19
Stefan Corredor
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer
Shares13,469
Max Price₹0.0011
Sell₹505,423,20208 Mar 19
Krishna Chigurupati
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares5,000,000
Max Price₹101.08
Buy₹2,499,99806 Dec 18
M. reddy
EntityIndividual
Shares28,000
Max Price₹89.29
Buy₹486,00019 Nov 18
Krishna Chigurupati
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares4,825
Max Price₹100.73
Buy₹401,99905 Nov 18
Krishna Chigurupati
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares3,875
Max Price₹103.74

Ownership Breakdown


Management Team

  • Atul Dhavle (49yo)

    Chief Human Resources Officer & Head of Operational Excellence

    • Tenure: 0yrs
  • Pranesh Mathur (63yo)

    President of API Division

    • Tenure: 9.3yrs
    • Compensation: ₹3.56m
  • Krishna Chigurupati (65yo)

    Chairman & MD

    • Tenure: 10.1yrs
    • Compensation: ₹149.90m
  • Harsha Chigurupati (36yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: ₹200.00k
  • Sreekanth Muttineni

    Chief Operating Officer

    • Tenure: 0yrs
  • Stefan Corredor

    Chief Marketing Officer

    • Tenure: 0yrs
  • Chaitanya Tummala

    Company Secretary & Compliance Officer

    • Tenure: 5.3yrs
    • Compensation: ₹3.09m
  • P. S. Murthy

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Desireddy Reddy

    Senior Vice President of GPI

    • Tenure: 0yrs
  • Sumanta Bajpayee

    Head of Corporate Finance

    • Tenure: 0yrs

Board Members

  • Arun Sawhney (64yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: ₹280.00k
  • Krishna Chigurupati (65yo)

    Chairman & MD

    • Tenure: 10.1yrs
    • Compensation: ₹149.90m
  • Harsha Chigurupati (36yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: ₹200.00k
  • Comandur Parthasarathy (64yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: ₹470.00k
  • Arun Akinepally (60yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: ₹980.00k
  • Uma Chigurupati (60yo)

    Non-Independent Executive Director

    • Tenure: 7.4yrs
    • Compensation: ₹119.92m
  • Kolli Basava Rao (65yo)

    Non-Executive Non-Independent Director

    • Tenure: 6.7yrs
    • Compensation: ₹680.00k
  • Priyanka Chigurupati

    Executive Director of Granules Pharmaceuticals Inc.

    • Tenure: 0yrs
    • Compensation: ₹9.65m
  • Jyothi Prasad (56yo)

    Additional Independent Director

    • Tenure: 0.5yrs
  • Robert Cunard (51yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹40.00k

Company Information

Granules India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Granules India Limited
  • Ticker: 532482
  • Exchange: BSE
  • Founded: 1984
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹29.048b
  • Shares outstanding: 254.25m
  • Website: https://www.granulesindia.com

Number of Employees


Location

  • Granules India Limited
  • My Home Hub
  • 2nd Floor
  • Hyderabad
  • Andhra Pradesh
  • 500081
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532482BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2003
GRANULESNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2003

Biography

Granules India Limited manufactures and sells active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates, and finished dosages (FDs) in India and internationally. The company's APIs ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:35
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.