Motilal Oswal Bullish on Granules India, Targets Rs 820
Granules India Ends Fiscal Year 2026 on a Strong Note, Beats Earnings Expectations
Granules India, a leading pharmaceutical company, has delivered in-line revenue and higher-than-expected earnings before interest, taxes, depreciation, and amortization (EBITDA) and profit after tax (PAT) for the quarter, according to a recent research report by Motilal Oswal. This marks a significant improvement in the company's overall momentum for the quarter, particularly in its formulation (FDF) and active pharmaceutical ingredient (API) sales.
The company's performance in the quarter was driven by increased formulation sales and product diversification to the complex generics segment. This strategic move has paid off, as Granules India has effectively ended fiscal year 2026 on a strong note after experiencing muted performance over the previous three fiscal years (FY23-25). The improvement in the company's financials is a testament to its efforts to expand its product portfolio and tap into new markets.
Motilal Oswal's Research Report
| Metric | Fiscal Year 2026 | Fiscal Year 2025 | Fiscal Year 2024 |
|---|---|---|---|
| Revenue | INR [insert number] | INR [insert number] | INR [insert number] |
| EBITDA | INR [insert number] (6% beat) | INR [insert number] | INR [insert number] |
| PAT | INR [insert number] (6% beat) | INR [insert number] | INR [insert number] |
The research report by Motilal Oswal values Granules India at 21 times its 12-month forward earnings, arrived at a target price of INR 820. The report reiterates a "BUY" recommendation for the company, based on its strong performance and potential for future growth.
Investor Takeaway
Investors should consider buying Granules India with a target price of Rs 820.
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