Granules India Q2 Review - Elevated key Starting Materials Prices Impact Earnings: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Granules India Ltd.’s Q2 FY22 earnings were below estimates despite revenues being largely in-line.
The miss on the margin front was due to ongoing price inflation in key starting materials as well as elevated opex.
We cut our earnings per share estimate for FY22E/FY23E by 23%/14%, factoring in-
prolonged concerns on escalated raw material prices, particularly for paracetamol, and
China-led supply disruptions resulting in higher logistic costs.
Headwinds related to raw materials are expected to ease over the medium term, and Granules India continues its effort towards building the abbreviated new drug application pipeline.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.