Granules India Q1 Results Review - Higher Finished Dosage Share Drives Earnings: Dolat Capital

Dolat Capital Report

Granules India Ltd.’s Q1 FY25 sales came in line with our estimates, while Ebitda and profit after tax came above due to better than expected gross margin.

Granules India expects to launch 11-12 new products in the U.S., EU and other rest of world markets in FY25; gross margin to sustain at 58-59% in FY25. H2 FY25 will have stronger earnings than H1 FY25.

We upgrade our FY25E/FY26E EPS estimates by 2.1%/8.7% assuming a higher gross margin due to increase in formulation share.

Maintain ‘Accumulate’ rating with target price of Rs 664 (earlier Rs 459) at 20 times FY26 price/earning (previously 15 times).

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