Jan 23 (Reuters) - Paracetamol maker Granules India reported a 28% jump in third-quarter profit on Friday, driven by strong demand in its key European and North American markets.
Consolidated profit rose to 1.5 billion rupees ($16.3 million) in the quarter ended December 31, from 1.18 billion rupees a year ago.
Granules posted a 22% rise in revenue from operations to 13.88 billion rupees.
North America, which generates about two-thirds of the firm's revenue, logged a 14% jump in sales. Europe sales, which contribute 19% to the topline, more than doubled.
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KEY CONTEXT
Granules India accounts for about 30% of the global paracetamol market and supplies the drug both as an active pharmaceutical ingredient (API) and in finished dosage form across Europe, Canada and South Africa.
APIs are key chemical components that give medicines their therapeutic effect.
Indian API makers are facing pricing pressure in major Western markets due to intensifying competition, even as global drugmakers increasingly look to India to diversify supply chains and cut reliance on Chinese suppliers.
PEER COMPARISON
|
Estimates (next 12 months) |
Analysts' sentiment |
||||||||
|
RIC |
PE |
EV/EBITDA |
Revenue growth (%) |
Profit growth (%) |
Mean rating* |
# of analysts |
Stock to price target** |
Div yield (%) |
|
|
Granules India Ltd |
(GRAN.NS) |
21.12 |
11.92 |
15.37 |
22.31 |
Buy |
3 |
0.95 |
0.26 |
|
Laurus Labs Ltd |
(LAUL.NS) |
63.98 |
31.23 |
16.42 |
37.84 |
Hold |
14 |
1.17 |
0.15 |
|
Alivus Life Sciences Ltd |
(ALIV.NS) |
17.60 |
11.84 |
12.37 |
16.33 |
Strong Buy |
4 |
0.73 |
0.57 |
|
Divi's Laboratories Ltd |
(DIVI.NS) |
54.53 |
38.72 |
17.99 |
22.38 |
Hold |
28 |
0.92 |
0.48 |
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER TO DECEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 91.8590 Indian rupees
Reporting by Kashish Tandon and Nandan Mandayam in Bengaluru; Editing by Sumana Nandy and Harikrishnan Nair
Source: Reuters