Granules India Limited (GRANULES) AI Stock Analysis

• Market Cap: ₹139.17B
• Dividend Yield: 0.26%
• Average Volume (3M): 56.05K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.30
• Revenue Growth: 8.14%
• EPS Growth: 5.18%
• Country: IN
• Employees: 4,057
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 5.40
• Shares Outstanding: 242,668,720
• 10 Day Avg. Volume: 60,875
• 30 Day Avg. Volume: 56,048
• PEG Ratio: 0.99
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 60.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹636.00 ▲(9.69% Upside)

Granules India Limited's stock is supported by strong financial performance and positive technical indicators. However, the valuation suggests the stock may be overvalued, which slightly tempers the overall score.

Positive Factors

Cash Generation

Strong cash generation from operations indicates effective business management and provides flexibility for future investments and debt servicing.

Profitability

High gross profit margins reflect efficient cost management and competitive pricing power, supporting long-term financial health.

Equity Base

A strong equity base provides financial stability and reduces reliance on external financing, enhancing resilience against market fluctuations.

Negative Factors

Revenue Growth Decline

Declining revenue growth can indicate challenges in market expansion or competitive pressures, potentially affecting future profitability.

Debt Levels

High debt levels can increase financial risk and limit strategic flexibility, impacting long-term sustainability and growth opportunities.

Earnings Growth

Negative EPS growth suggests declining profitability, which could affect investor confidence and limit reinvestment in business initiatives.

Granules India Limited Business Overview & Revenue Model

Company Description

Granules India Limited (GRANULES) is a leading pharmaceutical manufacturer based in India, specializing in the production of active pharmaceutical ingredients (APIs), pharmaceutical formulations, and other value-added products. The company operates primarily in the pharmaceutical sector, providing a diverse range of products including generic and branded medications across various therapeutic categories. Granules is recognized for its commitment to quality and innovation, catering to both domestic and international markets.

How the Company Makes Money

Granules India Limited generates revenue primarily through the sale of its pharmaceutical products, which include APIs and finished formulations. The company has established a robust revenue model that includes direct sales to pharmaceutical companies, contract manufacturing, and supply agreements with global clients. Key revenue streams come from the export of its products to markets in North America, Europe, and other regions, as well as from its strong presence in the Indian market. Additionally, Granules engages in strategic partnerships and collaborations with other pharmaceutical companies to enhance its product offerings and expand its market reach, further contributing to its financial performance.

Granules India Limited Financial Statement Overview

Summary

Granules India Limited demonstrates a solid financial position with strong profitability and efficient cash generation. The balance sheet indicates moderate leverage, but robust equity and cash flow performance mitigate potential risks.

Income Statement

Granules India Limited shows strong profitability with consistently high gross profit margins. However, revenue growth has seen fluctuations, with a slight decline in the recent year, impacting overall income stability. Net profit margins are solid, indicating efficient cost management.

Balance Sheet

The company maintains a healthy equity base, reflected in a good equity ratio. However, the debt-to-equity ratio is moderately high, indicating reliance on debt financing. Return on equity is strong, showcasing effective use of shareholders' funds for generating profits.

Cash Flow

Granules India Limited exhibits robust operating cash flows, indicating strong cash generation from core operations. Free cash flow has improved significantly, indicating better cash management. The operating cash flow to net income ratio is favorable, highlighting efficient cash utilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.12B	44.82B	45.06B	45.12B	37.65B	32.38B
Gross Profit	27.15B	26.25B	23.76B	21.20B	17.97B	17.77B
EBITDA	8.99B	9.30B	8.48B	9.13B	7.26B	8.64B
Net Income	4.80B	5.02B	4.05B	5.17B	4.13B	5.49B
Balance Sheet
Total Assets	0.00	62.53B	55.21B	49.05B	45.13B	37.13B
Cash, Cash Equivalents and Short-Term Investments	4.69B	5.96B	3.81B	2.92B	3.96B	2.63B
Total Debt	0.00	14.55B	13.15B	11.36B	11.06B	8.49B
Total Liabilities	-37.16B	25.37B	22.95B	20.70B	19.26B	15.40B
Stockholders Equity	37.16B	37.16B	32.26B	28.35B	25.87B	21.73B
Cash Flow
Free Cash Flow	0.00	1.95B	588.38M	4.52B	-656.53M	1.61B
Operating Cash Flow	0.00	7.67B	4.39B	6.64B	3.32B	4.32B
Investing Cash Flow	0.00	-6.95B	-3.60B	-964.52M	-3.80B	-2.77B
Financing Cash Flow	0.00	109.58M	76.64M	-5.19B	1.90B	-2.99B

Granules India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 579.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GRANULES, the sentiment is Positive. The current price of 579.8 is above the 20-day moving average (MA) of 559.16, above the 50-day MA of 560.40, and above the 200-day MA of 507.97, indicating a bullish trend. The MACD of 5.19 indicates Negative momentum. The RSI at 60.14 is Neutral, neither overbought nor oversold. The STOCH value of 88.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GRANULES.

Granules India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹684.30B	19.99	―	0.34%	7.33%	-3.79%
GRANULES	73 Outperform	₹139.17B	27.13	―	0.26%	8.14%	5.18%
CIPLA	68 Neutral	₹1.21T	22.27	―	0.87%	6.93%	21.55%
SANOFI	67 Neutral	₹96.08B	26.97	―	4.67%	-19.94%	-22.49%
APLLTD	60 Neutral	₹166.32B	26.22	―	1.30%	11.42%	-1.91%
GLENMARK	53 Neutral	₹554.82B	54.94	―	0.26%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Granules India Limited Corporate Events

Granules India Expands R&D with New Centres at IIT Hyderabad

Granules India Limited has inaugurated two new Centres of Excellence at IIT Hyderabad’s Technology Research Park, aimed at bolstering its R&D capabilities. The Ascelis Center of Excellence for Peptide Development and Characterization will focus on cosmetic, therapeutic, and pharmaceutical peptides, enhancing the company’s global peptide offerings. Meanwhile, the Granules Center of Excellence for Particle Engineering will advance research in polymorphs, material science, and novel drug delivery systems, supporting the creation of proprietary technologies for regulated markets. These initiatives are expected to strengthen Granules India’s competitive edge in pharmaceutical innovation and deliver significant value to its partners and patients worldwide.

Granules India Subsidiary Receives US FDA Inspection Report

Granules India Limited announced that its subsidiary, Granules Pharmaceuticals, Inc., received an Establishment Inspection Report from the US FDA following a Pre-Approval Inspection for a first-to-file controlled substance ANDA. The inspection, conducted in June 2025, resulted in one observation that has since been resolved, indicating the company’s commitment to maintaining regulatory standards.