Priyanka Tiwari
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Granules India’s stock increased by almost 3% on March 3, hitting an intraday high of Rs 475, as the Indian LIC increased their stake on the pharmaceutical company to 5.02%.
The PSU insurer has added 1783000 shares between January 1 to March 3, taking its stake to 17.83 percent from the 4.26 percent as of December. This shows increasing faith from institutions in the Hyderabad pharma company.
Granules India is the focus of active investigation following the warning letter issued by US FDA to their Gagillapur facility in the previous week. The company specializes in manufacturing Active Pharmaceutical Ingredients(API), Formulation Intermediates (PFI) and Finished Dosages (FD) for international markets.
This notice is a follow up on the inspection conducted in August 2024, which placed the site into an ‘Official Action Indicated’ classification. The company will most likely experience annoying delays on pending product approvals, but company representatives have reassured investors that, while those product approvals do remain in limbo, all present operations in manufacturing and distribution are not and the company will continue working closely with the regulator to solve compliance problems.
The company has disclosed its financial statements, revealing a weaker net profit of ₹118 crores which is a 6.4 decrement doe to EBITDA which is 8 % less than the previous quarter at a ₹230.2 net profit revenue. The company has also confirmed an EBITDA margin of 20.2 % as opposed to a pesoding 22.
On the NSE, the shares settled at ₹ 472.85, which reflects an increment of 2.4 % from the previous day. Since the start of the year, the shares of Granules India have shown a 20% decline.
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