Granules India - Strong End To FY21; On Track To Develop Product, Add Capacity: Motilal Oswal
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Motilal Oswal Report
Granules India Ltd. delivered an in-line performance in Q4 and posted its highest ever sales/Ebitda/profit after tax on an annual basis in FY21.
This was largely led by strong traction in ingredients (pharmaceutical formulation intermediates) and formulations.
While the company is on track to expand capacity/develop products, a sharp increase in prices of select key starting materials (KSM) may hinder its near-term performance.
We lower our FY22E/FY23E earnings per share estimate by 11%/10% to factor in a price increase/reduced availability of KSM like para-aminophenol /acetic anhydride and lower operating leverage.
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