GRANULES INDIA LTD - Q1 FY 2020 RESULTS REVIEW

GRANULES INDIA LTD

Q1 FY 2020 RESULTS REVIEW

COMPANY OVERVIEW

Granules India Ltd is engaged in the manufacture of active pharmaceutical ingredients (API`s) and pharmaceutical formulation intermediates (PFIs) with complete vertical integration.

The company`s product range includes Active pharmaceutical ingredients (APIS) Paracetamol, Brompheniramine Maleate, Dichloralphenazone, Isometheptene Mucate, Isometheptene Base, Guaifenesin, Methocarbamol, Metformin HCl, Oxymetazoline HCl, Xylometazoline HCl, Phenazopyridine HCl, Pamabrom, Phenyltoloxamine Citrate, Gabapentene and Dextropropoxyphenazone Napsylate.

APIS under development - Ibuprofen and Glucosamine Sulphate.

Pharmaceutical formulation intermediates (PFIS) - Compresso PAP 90 CPC, Compressoo PAP 90 CPP, Compresso PAP 90 CPF, Compresso PAP 90 CPL, Compresso PAP 96 P, Compresso PAP 83.3 S etc.PFIs using multiple APIS - Compresso Cotrim 90, Compresso IBU 56 SE, Compresso PAP 77 P, Compresso PAP 79 PE and Compresso PAP 80 PS.

Microencapsulated products - Compresso Micro PAP 92, Microencapsulated Ibuprofen and Microencapsulated Aspirin..The company also in the business activities of Pharmaceuticals

Management

    Krishna Prasad Chigurupati   Chairman & Managing Director

    Uma Devi Chigurupati    Executive Director

    Harsha Chigurupati        Executive Director

PRICE CHART

Only from Aug,19, there is significant price rise – from Rs.86 levels to current levels. Otherwise, last 5 years, it was at 86-110 levels only.

Granules has 8 manufacturing facilities in strategic locations across the world.

PRESS RELEASE

–July 3, 2020Granules Pharmaceuticals, Inc., Chantilly, VA is voluntarily recalling twelve (12)  lots of Metformin  Hydrochloride  Extended-Release  Tablets  USP,  750  mg,100and  500  count bottles    within    expiry    to    the    consumer    level    due    to    the    detection    of    N-Nitrosodimethylamine (NDMA) levels above the Acceptable Daily Intake Limit.

Granules  Metformin  Hydrochloride  Immediate-Release  Tablets  USP,500mg, 850mg  & 1000mg  and  Metformin  Hydrochloride Extended-Release Tablets USP,500mg are not affected by this recall.

JULY 2^ND : the promoters have informed that they have reduced 12.95%of the total equity share pledge on GIL. Post this event,3.64% of the total shareholder’s equity is still currently pledged. I  will  be  clearing  the  rest  shortly  .

ANDA approval for – 

(1) Vigabatrin for Oral Solution USP, 500 mg        27-04-2020 (2) Trospium Chloride ER Capsules, 60 mg      24-04-2020      (3) Butalbital, Acetaminophen and Caffeine Capsules USP 09-04-2020        (4) Guaifenesin Extended-Release Tablets     13-02-2020 (5) Colchicine Capsules      11-02-2020  (6)  Colchicine Tablets        06-02-2020 

(1) USFDA completes inspection at Granules India’s Hyderabad facility       15-02-2020  

 

The recent news stating that government lifted restrictions on export of active pharmaceutical ingredients (API) of common pain reliever Paracetamol would be beneficial going forward.

Granules India (in Rs. Cr.)	Jun '20	Mar '20	Jun '19	YOY	QOQ
Net Sales	735.59	599.88	595.27	23.57	22.62
TOTAL COSTS	592.03	545.48	512.19	15.59	8.53
SHARE OF PROFIT			25.49	-100
Exceptional Items	--	-59.77	--
P B T	149.19	136.7	110.43	35.1	9.14
Tax	37.73	44.36	27.18	38.82	-14.95
Net Profit	111.45	92.34	83.24	33.89	20.7
Equity	24.71	25.42	25.42	-2.79	-2.79
Basic EPS	4.39	3.63	3.27	34.25	20.94

MP  264.05                       

PE   15.03416856                    

52 Wk L/H     84.25     267.55   

             

Valuation 

                                 

Market Cap (Rs Cr.)    6,529.86                           

P/E                            14.7                                 

Book Value (Rs)          73.23                                

Dividend (%)               100                            

Industry P/E                32.22                                

EPS (TTM)                   17.96                                

P/C                             11.96                                

Price/Book                  3.61                                 

Dividend Yield.(%)      0.38                                 

Face Value (RS)          1 

                              

Historical Prices On                               

JUL 18,2020  

              3 YR BEFORE   Current Price             

Open Price    141          248.25                

Close Price    139.7        245.95                

Volume        95,418   1,148,748 

                 

Share Holding Pattern in (%) 

                             

Standalone    Jun-20   Mar-20                

Promoters     42.13     42.86                  

Pledged          8.64       37.62                  

FII/FPI           22.95     21.7                    

Total DII         11.4       11.19                  

Fin.Insts           3.12       3                  

Insurance Co     0           0                  

MF                    0.1        0.01                    

Others DIIs        8.18       8.18                    

Others              23.53     24.25                  

Total                100.01     100