This pharma stock engaged in manufacturing Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs), and Finished Dosages, focusing on high-volume drugs globally, jumped 3 percent after increasing its stake to 5.023 percent in the company by Life Insurance Corporation of India (LIC).
Stock Price Movement:
With a market capitalization of Rs. 11,473.59 crores, the share of Granules India Limited has reached an intraday high of Rs. 474.95 per equity share, rising nearly around 2.90 percent from its previous day’s close price of Rs. 461.55. Since then, the stock has retreated and is currently trading at Rs. 473.15 per equity share.
What Happened:
Life Insurance Corporation of India (LIC) has acquired a 5.023 percent stake in Granules India Ltd. through a market purchase. The acquisition involved purchasing 1,21,82,570 shares, which increased their holding from 4.991 percent to 5.023 percent of the total voting capital of the company.
This represents an increase of 0.032 percent in LIC’s total stake, reinforcing its position as a significant shareholder. As per the latest filling, this transaction was completed on February 27, 2025.
Future Outlook:
The company management is confident about achieving a 20 percent compound annual growth rate (CAGR). They expect FY26 to show significant improvement over FY25, driven by new capacity coming online and expected European inspections.
Additionally, the company plans to spend around Rs. 500 crore on capital expenditure (Capex) in FY26, focusing on expanding its production capabilities to support growth.
Company Overview:
Granules India Limited was founded in 1984 and headquartered in Hyderabad, and is a vertically integrated pharmaceutical company. It develops, manufactures, and distributes active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates (PFIs), and finished dosages globally, specializing in high-volume drugs like paracetamol, ibuprofen, and metformin.
Recent quarter results and ratios:
Granules India Limited’s revenue has decreased from Rs. 1,156 crore in Q3 FY24 to Rs. 1,138 crore in Q3 FY25, which has dropped by 1.56 percent. The net profit has also decreased by 6.35 percent from Rs. 126 crore in Q3 FY24 to Rs. 118 crore in Q3 FY25.
Granules India Limited’s revenue and net profit have grown at a CAGR of 14.61 percent and 11.41 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 15.4 percent and 13.4 percent, respectively. Granules India Limited has an earnings per share (EPS) of Rs. 19.8, and its debt-to-equity ratio is 0.32x.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
