Granules India Limited

NSEI:GRANULES Stock Report

Market Cap: ₹128.3b

Granules India Valuation

Is GRANULES undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GRANULES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRANULES (₹529.1) is trading above our estimate of fair value (₹109.83)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRANULES?

Key metric: As GRANULES is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GRANULES. This is calculated by dividing GRANULES's market cap by their current earnings.
What is GRANULES's PE Ratio?
PE Ratio26.3x
Earnings₹4.87b
Market Cap₹128.26b

Price to Earnings Ratio vs Peers

How does GRANULES's PE Ratio compare to its peers?

The above table shows the PE ratio for GRANULES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average66.6x
STAR Strides Pharma Science
71x45.6%₹125.6b
GLS Glenmark Life Sciences
31.3x23.4%₹132.5b
524742 Caplin Point Laboratories
30.6x13.6%₹150.9b
AETHER Aether Industries
133.7x44.8%₹107.9b
GRANULES Granules India
26.3x22.1%₹128.3b

Price-To-Earnings vs Peers: GRANULES is good value based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (66.6x).

Price to Earnings Ratio vs Industry

How does GRANULES's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.6xn/aUS$72.79m
524652 Ind-Swift
2xn/aUS$13.15m
No more companies available in this PE range
GRANULES 26.3xIndustry Avg. 32.4xNo. of Companies18PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GRANULES is good value based on its Price-To-Earnings Ratio (26.3x) compared to the Indian Pharmaceuticals industry average (32.7x).

Price to Earnings Ratio vs Fair Ratio

What is GRANULES's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRANULES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.3x
Fair PE Ratio40.3x

Price-To-Earnings vs Fair Ratio: GRANULES is good value based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (40.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GRANULES forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹529.10
₹691.88
+30.8%
7.2%₹765.00₹600.00n/a8
Nov ’25₹570.20
₹706.00
+23.8%
6.5%₹769.00₹645.00n/a8
Oct ’25₹579.15
₹710.38
+22.7%
5.9%₹769.00₹650.00n/a8
Sep ’25₹718.10
₹708.57
-1.3%
6.2%₹769.00₹650.00n/a7
Aug ’25₹631.50
₹624.57
-1.1%
17.9%₹765.00₹443.00n/a7
Jul ’25₹494.65
₹488.14
-1.3%
10.2%₹600.00₹443.00n/a7
Jun ’25₹418.50
₹473.00
+13.0%
4.9%₹515.00₹443.00n/a7
May ’25₹423.30
₹483.43
+14.2%
4.8%₹515.00₹455.00n/a7
Apr ’25₹437.95
₹478.43
+9.2%
4.3%₹515.00₹455.00n/a7
Mar ’25₹463.45
₹472.33
+1.9%
3.2%₹500.00₹455.00n/a6
Feb ’25₹412.20
₹472.33
+14.6%
3.2%₹500.00₹455.00n/a6
Jan ’25₹411.80
₹404.00
-1.9%
11.3%₹464.00₹320.00n/a7
Dec ’24₹392.85
₹391.38
-0.4%
13.8%₹464.00₹303.00n/a8
Nov ’24₹337.40
₹356.71
+5.7%
14.4%₹437.00₹277.00₹570.207
Oct ’24₹354.75
₹341.14
-3.8%
9.9%₹370.00₹277.00₹579.157
Sep ’24₹302.30
₹341.14
+12.8%
9.9%₹370.00₹277.00₹718.107
Aug ’24₹326.20
₹358.29
+9.8%
12.1%₹452.00₹303.00₹631.507
Jul ’24₹296.90
₹359.67
+21.1%
13.0%₹452.00₹303.00₹494.656
Jun ’24₹288.05
₹358.83
+24.6%
13.0%₹452.00₹303.00₹418.506
May ’24₹300.35
₹378.17
+25.9%
9.4%₹452.00₹345.00₹423.306
Apr ’24₹290.70
₹378.17
+30.1%
9.4%₹452.00₹345.00₹437.956
Mar ’24₹283.50
₹371.57
+31.1%
9.9%₹452.00₹332.00₹463.457
Feb ’24₹291.50
₹371.57
+27.5%
9.9%₹452.00₹332.00₹412.207
Jan ’24₹318.80
₹367.71
+15.3%
6.5%₹410.00₹332.00₹411.807
Dec ’23₹340.80
₹367.38
+7.8%
6.1%₹410.00₹332.00₹392.858
Nov ’23₹373.65
₹367.38
-1.7%
6.1%₹410.00₹332.00₹337.408

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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