The shares of Granules India Limited opened at Rs 320 and zoomed by 2 per cent to reach an intraday high of Rs 327 on Monday. In the span of a month, the stock has moved marginally and gained approximately 5 per cent.
In the span of three years, the stock has given a multibagger return of 203 per cent, as the share price has risen from Rs 107 in September 2019 to the current levels.
The board of the company has approved a buyback of shares. The company plans to buy back a total of 62.5 lakhs shares which is equivalent to 2.52 per cent of the total paid-up capital.
The shares will be bought back at the price of Rs 400 each which represents a premium of 24% from the current levels which will amount to Rs 250 crore in total. The buyback of shares via tender offer will open on September 27 and close on October 11. The record date for the purpose of the record date was set as August 23rd.
In Q1FY23, the company reported a total revenue increase to Rs 1,019 crores compared to Rs 849 crores which they earned in the same period a year prior. Their net profit stood at Rs 127 crores which increased from Rs 120 crores in Q1FY22.
The company has a market capitalization of Rs 8,067 crores as of September 19th, 2022 and a dividend yield of 0.46%. The company has a TTM PE ratio of 19.22 as compared to the sectoral PE of 28.58.
Granules India Ltd is engaged in the manufacture of active pharmaceutical ingredients (APIs) and pharmaceutical formulation intermediates (PFIs) with complete vertical integration. The company has a presence in 60+ countries across the world.
The promoters hold a 41.98 per cent stake in the company and have pledged a 10.59 per cent stake.
Written by Anoushka Roy
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