Granules India Ltd

Granules India Ltd is a leading, vertically integrated pharmaceutical company dedicated to manufacturing Active Pharmaceutical Ingredients (API), Pharmaceutical Formulation Intermediates (PFI) and Finished Dosages (FD) products. GIL has built one of the largest PFI and single site FD facilities in the world and have the world’s largest Paracetamol API facility. Known as one of the most cost-effective and efficient manufacturers of APIs, the company emerged as a leading manufacturer and supplier of Paracetamol, Metformin, Guaifenesin, and Methocarbamol. As one of India’s largest PFI manufacturers with a batch processing capacity of six tons and ensuring economies of scale and cost-efficiency in the PFI space; the PFIs produced by the company can be directly taken to the hoppers from the drums and it has enabled it to become a preferred PFI supplier for some of the most renowned global pharma companies. The existing portfolio of finished dosages comprises Caplets, Tablets as well as Press-fit Capsules in Bulk, Blister packs and Bottles. Produces finished dosages that are marketed in 80+ countries, including the highly regulated markets of the US and Europe. It also produces Bi-layered tablets, Rapid release tablets, and Extended release (ER) tablets. The company developed its own ANDAs and dossiers to offer an added advantage to its customers. It has over seven manufacturing facilities, six of which are located in India and one in the United States. The company sells its products in the global markets, including the United States of America, Canada, Latin America, Europe, Asia Pacific and India. Its wholly owned subsidiaries include Granules USA Inc, Granules Pharmaceuticals Inc., Granules Europe Limited and Granules Lifesciences Private Limited. During the year ended, the company completed new finished dosage block for the manufacturing of MUPS (multi-unit pellet system) products in an existing manufacturing plant with a capex of Rs 240 Cr. To enhance value for the shareholders, the company has made two buy back offers (2020 & 2022). The last buy back was done at a price of Rs400. Buy at current levels for target price of Rs450 in medium term.