The shares of this pharmaceutical stock, specializing in Active Pharmaceutical Ingredients (API), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages, came into focus on Monday after the Board approved the acquisition of a 100 percent equity stake in Switzerland-based Senn Chemicals AG for Rs 192.5 crore.
Stock Performance
With a market capitalization of Rs 12,509.04 crore, Granules India Ltd jumped 2 percent in Monday’s trading session and made a high of Rs 519 per share compared to its previous closing price of Rs 509 per share. The stock retraced from its day’s high and was trading at Rs 515.85 which is 1.3 percent higher than the previous closing price.
What Happened
In a company filing, Granules India Ltd announced the signing of an agreement to acquire Senn Chemicals AG, a Swiss CDMO specializing in peptides. This acquisition, expected to close in the first half of 2025, marks Granules’ entry into the peptides segment and also strengthens its presence in the European CDMO market.
Senn develops and manufactures peptides and peptide-based applications for global customers. The company’s expertise in Liquid-Phase and Solid-Phase Peptide Synthesis, along with its cGMP-certified manufacturing facility, enhances Granules’ capabilities in high-growth peptide-based therapeutics, including GLP-1 receptor agonists for anti-diabetic and anti-obesity treatments.
Company Overview
Granules India Limited is a pharmaceutical company specializing in active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediaries (PFIs), and finished dosages (FDs). It operates more than eight manufacturing facilities, with seven in India and one in the United States. The company caters to global markets, including the US, Canada, Latin America, Europe, Asia-Pacific, and India, through its subsidiaries.
Financial Performance
In the latest quarter, Granules reported a 1.6 percent YoY decrease in its revenue from Rs 1,156 crore to Rs 1,138 crore. On a quarterly basis, there was an 18 percent increase from Rs 967 crore in Q2 FY25.
This was accompanied by a 6 percent YoY fall in net profits from Rs 126 crore to Rs 118 crore. On a quarterly basis, the company saw a 22 percent increase in profits from Rs 97 crore in Q2 FY25.
Industry Outlook
India’s pharmaceutical industry ranks third globally by production volume and 14th by value, with around 3,000 drug companies and 10,000 manufacturing units. Valued at $58 billion, the sector is projected to reach $120-130 billion by 2030 and $400-450 billion by 2047. This growth would be driven by rising lifestyle diseases, an aging population, and increased healthcare consumerization.
Written by Shwetha Sairam
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