Shares of this smallcap company jumped around 1 percent in Thursday’s trading session after axis mutual funds bought a stake via bulk deal. The shares have delivered more than 50 percent returns to its shareholders in one year.
With a market capitalization of Rs. 10,396 crores, the shares of Granules India Ltd started Thursday’s trading session on a higher note at Rs. 430 compared to its previous close of Rs. 426.80. During the trading session, the shares hit a high of Rs. 435.50, gaining around 1 percent and are currently trading at Rs. 428 apiece.
According to the NSE bulk deal, Axis Mutual Fund and Massachusetts Institute of Technology collectively acquired 51.19 lakh equity shares which is equivalent to 2.1 percent of paid-up equity at an average price of Rs 405.1 per share. On a contrasting note, promoter Krishna Prasad Chigurupati sold 75 lakh shares i.e., a 3.09 percent stake at an average price of Rs 405.08 per share.
Looking at the company’s financial statements, the revenue increased marginally by 2 percent from Rs. 1,155.58 crores duirng the December quarter to Rs. 1,175.78 crores in the March quarter. In addition, the net profits increased by 3 percent from Rs. 125.65 crores to Rs. 129.65 crores during the same period.
The company derives its revenue from diverse geographical regions, with a predominant share of 70 percent originating from North America. Europe contributes 17 percent to the revenue stream, while India accounts for 3 percent. The remaining 10 percent is generated from various other parts of the world.
Furthermore, the company is expecting healthy revenue growth in FY 25, driven by new product launches and increased market share and also planning a capex of Rs. 6,000 million for FY 25, with investments in Granules Life Sciences and maintenance capital.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 12.56 percent and a return on capital employed (RoCE) of 18.99 percent for the period spanning FY23-24.
Headquartered in Hyderabad, Granules India was incorporated in 1991. The company and its subsidiaries are primarily involved in the manufacturing and selling of Active Pharma Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages.
Written By Vaibhav Patil
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