Query: I have Granules India at Rs.105 for the past two months. Would be greateful if you could let me know what are the future prospects of this stock. PVR KumarThebullishtrends: Granules share price closed on Monday at Rs.109. Hyderabad based Granules India expertise in manufacturing APIs since 1984 and PFIs since 1993. Granuls India's strategic goals is to offer a complete vertical integrated solution. Offering quality products has helped GIL grow, over the years, to become one of the largest manufacturers of Paracetamol in the world.
Granules India Ltd. (GIL) has a long history as a producer of active pharmaceutical ingredients (API's) and pharmaceutical formulation intermediates (PFIs) with complete vertical integration. The PFI plant is one of the biggest in the world with an annual capacity of 7200MT and a batch size of 6MT. The plant is approved by USFDA, German Health Authority, Canadian TPD and Australian TGA. GIL is also coming up with a state of the art tableting facility which will have a capacity of 12 Billion tablets.
Granules India's sales turnover is increasing Q on Q basis but total expenditure has increased from June'07 to Sept'07 it almost Rs.5 Cr but where the company utilised this money yet to know. Operating profit margins were also come down compared to previous quarter. Netprofit slightly come down. Granules India is having aggressive expansion plans these results will come from next financial year only.
This is the company having financial year from June to June and you will get 2nd quarter results tomorrow. The stock price has not given much results since two years to its investros and so far the results of the company are not encouraging but It is ideal to judge this scrip once the 2nd quarter results are available.
