ICICI Direct Initiates Buy On Midcap Cap Pharma Stock, Sees 23% Return, Soon To Trade Ex-Dividend

Brokerage firm ICICI Direct is positive on Granules India Ltd. The brokerage assigns "Buy" on stock for a decent upside of 23% from its current with the given target price of Rs. 360. It is a Pharmaceuticals sector midcap stock with a market capitalisation of Rs. 7.134.21 crore.

The stock has recommended a Final Dividend of Rs. 1.50/share of face value of Rs. 1 each for the financial year 2022-23. Recently, the board has also announced the record date for the final dividend. The board has fixed August 03, 2023, as the record date.

Final Dividend & Record Date

According to the exchange filing by the Board of Directors of Granules India Ltd., "Recommended to the members, a final dividend of Rs. 1.50/- per share of the face value of Re. 1/- each for the financial year 2022-23 representing 150% of the paid-up equity share capital of the Company."

The Board in a Meeting eld on May 17, 2023, announced August 03, 2023, as the Record date for payment of the final dividend of Rs. 1.50/- per share for the FY 2022-23.

API sales boost revenues; incremental capex for backward integration...

The brokerage said, "We maintain BUY rating on the back of 1) focus on strengthening the core API portfolio, 2) geographical expansion with product mix changes, 3) compelling risk-reward matrix with an ability to play in strength areas. We value Granules India at 13x FY25E EPS of Rs. 27.8 with target price as Rs. 360/share. This is our high conviction Midcap Idea."

Stock Overview

The stock last traded at Rs. 294.75 apiece, up 0.92% from its previous close. It traded the 52 week high on 4 November 2022 at Rs. 381 apiece and 52 week low on 20 June 2022 at Rs. 226.95 apiece, respectively.

It has given 5.48% in 1 week, and 6.68% in 1 month, respectively. It gave 21.67% positive return in 1 year. It gave 42.6% positive return in 3 years, In 5 years, it gave 234.5% positive return.

About - Granules India Ltd.

Granules is a large-scale vertically integrated company that manufactures API, intermediates and finished dosages and has seven manufacturing facilities along with B2B & B2C marketing & distribution. Revenue mix Q4FY23: Formulations - 51%, API (API+PFI) - 49%. Top five products (Paracetamol, Ibuprofen, Metformin, Methocarbamol, Guaifenesin) contributed 85% to FY23 revenues.

Disclaimer - The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.