GRANULES INDIA - RESULT UPDATE

Granules India  recommended @  Rs.79  ( Click HERE for old posting ) hits its 52 week high today @ Rs.230. Company reported very good performance in latest December quarter . Sales improved from Rs.195 Cr to Rs.284 Cr and net profit shot up from Rs.5.8 Cr to Rs.21.8. Nine moth EPS is Rs.26 which is more than last full year EPS of Rs.16

Recommending to HOLD it for long term.

UPDATES - GRANULES INDIA LTD,SABERO ORGANICS ,ALPHAGEO

GRANULES INDIA 

From a level of Rs.79,this stock recommended at least five times in the past .  Today ,Granules India hits its 52 week high @ Rs.192.( Initial Recommendation HERE) .Company scheduled an Extra ordinary General Meeting on 6th December to consider various matters related with the acquisition of Auctus Pharma .I believe, this Rs.100 Cr plus company ( Auctus Pharma)  with USFDA approved plant for an amount of Rs.100- 120 Cr is not a bad deal for Granules in the long term. Still recommending to HOLD this stock.

SABERO ORGANICS

As in the case of Granules India ,Sabero Organics Gujarat recommended more than once from a level of Rs.55 onwards. Today stock closed around Rs.140 .( Initial Recommendation HERE) . Company reporting steady growth both in Sales and margins and already reported an EPS of Rs.7.50 in the half year itself against Rs.2.30 in last full year.Recently ,company received an instruction from Gujarat Pollution Control Board to stop its production from a unit located at Sarigam , Gujarat. But now ,company clarified that the authorities revoked its earlier order after a re-inspection and permitted more time to fully comply with the norms. Today in an interview ,company management assured that they are confident in meeting all required standards within the allowed three months time period .

Interview Link HERE

Requesting to HOLD the stock for long term

ALPHAGEO INDIA

This stock recently recommended @ Rs.38 which is currently trading around Rs..42 . As expected and indicated in my previous posting ,after a long gap ,company started to receive  new orders from Indian oil exploration companies .Now company received two orders in last week ( Link 1 , Link 2) .Along with orders it received from overseas in recent times , these new orders giving more visibility for  company's business going forward ( Fore more details ,read HERE) . One can HOLD this stock and even consider a BUY if ready to take above average risk.

GRANULES INDIA -RESULT UPDATE

Granules India reported a 52 % rise in top line and an 87 % jump in net profit for the quarter ended September compared with same period of last year. Half year EPS is close to Rs.15 which is almost equal to last full year EPS .Management expressed their confidence in attaining more customer approvals in the second half which will help the company to scale up the business further.

Company closed down its Singapore subsidiary which is a dormant one and not  commenced any activity so far with a  Share Capital of the just  Rs.5 lakhs. No negative impact on that account.

In addition to this ,today India Government imposed an anti dumping duty of Rs.50000 ( approx) per ton on the imported paracetamol from China , which will indirectly help the company . ( Read the news HERE )



In addition to the ongoing capacity expansions for existing products ,Company's new joint venture with Belgium based  Ajinomoto Omnichem for producing high margin niche API's are expected to start functioning at the end of next financial year.  

At the time of June quarter result  I recommended a BUY around Rs.140 level for those having some risk appetite  .( Originally recommended @ Rs.79 HERE ) .Now raising the buy price to Rs.160 and recommending a HOLD at CMP for long term for further gain.


Disc: I have vested interest in GIL

GRANULES INDIA - RESULT UPDATE

On a consolidated basis Granules India reported a sales of Rs.204 Cr v/s Rs.188 Cr in March quarter.Company reported a net profit of Rs.12 Cr v/s Rs.16 Cr during this period.But in last year same quarter there was a forex gain of Rs.8 Cr out of Rs.16 Cr net profit .If we exclude this exceptional income,company's this quarter profit is almost 50% higher than that of last year same quarter.Company also declared a dividend of 20% for FY 2012-13 .Its full year EPS is Rs.16 .

GRANULES INDIA - UPDATES

1) Granules India will declare its Second Quarter Result on 25 Oct ,2012.

2) As per the latest share holding pattern , Mr Basava Sankararao Kolli - Former Executive Vice - President(now  consultant for  Dr.Reddy`s Lab ) acquired 1.62 % stake in Granules India.

3)  Based on the available information , Company's expansion program for PFI facility now completed and will start commercial production in near future after completing necessary trials.Expansion for Finished Dosage  is in-process and  it is also expected to  start commercial production in October - December quarter itself.

GRANULES INDIA - UPDATES

GRANULES INDIA
Recommended on 24 Mrach 2012 @ Rs.79 / - and currently trading @ Rs.196 /-


For old posting ,Click HERE

Mr. Harsha Chigurupati - Executive Director  of  the Company  purchased 12000 shares from open market at an average rate of Rs.191/- per share.

NITTA GELATINE , WPIL , GRANULES INDIA - UPDATES

NITTA GELATINE

Recommended @ Rs.86 / - and currently trading @ Rs.150 /- posted an increase of 847 % in net profit for the June quarter .

For old posting ,Click HERE

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WPIL 

 Recommended @ Rs.187 / - and currently trading @ Rs.412 /- , posted an increase of 30 % in net profit for the June quarter .
 For old posting ,Click HERE

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 GRANULES INDIA
 Recommended @ Rs.79 / - and currently trading @ Rs.145 /-

For old posting ,Click HERE

 Mr. Vijay Ramanavarapu (  Head - Strategic Sourcing in the Company) purchased 15000 shares from open market at an average rate of Rs.145/- per share.
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GRANULES INDIA - RESULT UPDATE

Click HERE for Result update.

GRANULES INDIA - UPDATE

Now it is four months and almost 100% appreciation on  Granules India from my first BUY recommendation @ Rs.79/- (For old posting click HERE ). Now I am receiving  lot of e-mails and comments asking whether one should book profit at current level.In my opinion ,even the movement is very sharp it is not over valued while we comparing it  with its peers and the full extent of future positives not  reflecting even at current price level.Hence I recommending a HOLD  at current price level and even a BUY for those with high risk appetite and patience to wait above one year.It is a point to note that , on a consolidated basis its last quarter includes a foreign exchange gain of about Rs.8 Cr  and this may or may  not repeat in the upcoming first quarter.So it is prudent not to build high expectation while we approaching the result on 26/07/2012.The real benefit of expansion is expected to start only from third quarter and those who are buying at this rate should show enough patience.

GRANULES INDIA - BUY

 

 

Like my repeated BUY recommendation on KAVERI SEED COMPANY in last year from a level of Rs.272/- onwards  ,this year it is GRANULES INDIA  for the fourth time even after an appreciation of about  40 % from the initial rate.I strongly feel this Hyderabad based Pharma company is still ignored by the market participants.This 650 Cr company ( Consolidated) is operating in API’s,PFI’s and Finished Dosages.Last year Granules posted a net profit of Rs.30 cr , a growth  of 43 % over previous year. Its turnover showing a CAGR of 28% in last five years which is exactly double of the average industry CAGR in these period.In FY 2011-12 , revenue growth in API division is 20% ,PFI 27 % and FD 83%.Currently company having 6 API products with a production capacity of 18000 TPA ,40 PFI products with 18000 TPA and 14 FD products with 18 Bn .What is really exciting is the upcoming increase in this production capacities where company’s API production will rise by 20% PFI by 200 % and FD capacity by 300%. Granules already made firm arrangements with MNC’s to sell these expanded capacity.Result of this expansion will start to reflect from the second quarter of this financial year itself.In addition to this ,Granules formed a 50:50 joint venture with Belgium based Ajinomoto Omnichem to produce niche low volume high price API’s .This new facility will be completed by the end of 2013 at Visakhapatnam and start commercial production from next FY.Company having an ambitious target of  Rs.5000 Cr turnover by 2017.Granules posted an EPS of Rs.14.90 and declared a dividend of  20 % for FY 2011-12.

Currently promoters holding about 41 % stake and FII's and institutions another 35 % .In recent months promoters are aggressively hiking their stake through open market purchases which is another important point to note.

 STANDALONE

 

  

CONSOLIDATED FULL YEAR

Since company is exporting about 80% of its production ,depreciation of  currency  is also expected to help the company to improve its bottom line.A clean and transparent management with higher standards of corporate governance makes Granules India a preferred pick from the mid/small cap space.CMP is Rs.110/-

For old posting Click HERE

Dicl : I have vested interest in GIL

GRANULES INDIA - RESULT UPDATE

  Granules India recommended as a BUY in last month @ Rs.79 /-( For old posting Click HERE ) ,today hits its 52 week high @ Rs.106 /- .      For the quarter ended March 2011,company posted a sales of Rs.188 Cr v/s Rs.120 Cr and a net profit of Rs.16 Cr v/s Rs.9 Cr (almost 85 % up) .Full benefit of its expansion will start to reflect from next year onwards.HOLD for long term.

GRANULES INDIA - REPEAT

I have recommended a BUY on Granules India on 24 March 2012 @ Rs.79 ,which is currently trading @ Rs.86/- .Reiterating BUY at CMP.

For old posting Click HERE

GRANULES INDIA LTD - BUY

Granules India is  Hyderabad based integrated pharmaceutical outsourcing manufacturer mainly in Active Pharmaceutical Ingredients (API), Pharmaceutical Formulations Intermediates(PFI) and  Finished Dosages (FD ). Company having three API manufacturing facilities located in Bonthapally,and  Jeedimetla  in Andhra Pradesh and Hubei in China.All these three facilities are approved by USFDA and other authorities like WHO ,EDQM..etc. Its API portfolio includes Paracetamol ,Ibuprofen,Metformin HCl,Guaifenesin,Methocarbamo,Oxymetazoline and Phenazopyridine HCl. Granules’ PFI facilities are located at Gagillapur and Jeedimetla both in Andhra Pradesh. Company also have six billion tablect capacity FD plant in Gagillapur. Company having strong outsourcing tie-ups with world pharma majors. Now company is moving gradually to high margin PFI and Fd segment from API .Last year Granules expanded its capacity in both these segments. Company having good R&D and got approvals for two ANDA’s in last year.Outside India, company having marketing presence in US,China,UK and Colombia.After receiving recent FDA approvals and capacity expansion company is expected to perform well going forward.Last FY , Granules posted a turnover of Rs.475 Cr and a net profit of Rs.21 Cr .With the aggressive expansion ,marketing initiatives,and introduction of new products and favorable exchange value ( about 80% of sales coming from exports.) Granules is expected to  post decent growth in coming years.It is one of the good pharma picks from small cap space at CMP of Rs.79/-