Granules India (GRANULES)

FairStock Score: 47/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Granules India as a Graham-style bargain hunter and Buffett-style quality seeker. The company earns a respectable ROE of 14.68% and ROCE of 15.14%, carries modest debt at Debt/Equity 0.30, and generated ₹178 Cr free cash flow. Its Piotroski F-Score of 8/9 and Altman Z-Score of 3.34 suggest financial distress is not an immediate concern. Latest quarter sales of ₹1,388 Cr and net profit of ₹150 Cr show it is profitable. But growth is unimpressive: sales fell 0.94%, profit rose only 3.25%, and the five-year revenue CAGR is 11.51%. The dividend yield is just 0.20%, so shareholders depend on price appreciation, not cash returns. Promoter holding of 38.02% gives some skin in the game but not overwhelming control. The bigger issue is price. At ₹858.40, P/E is 31.85, P/B is 4.18, PEG is 3.61, and EV/EBITDA is 73.33. Graham Number is ₹277.54, DCF intrinsic value is ₹391.62, and margin of safety is -109.79%. I am paying more than twice what my conservative models call intrinsic value. FairStock Score of 47/100 is mixed. The 52-week range ₹529.85–₹922.10 shows the market can swing widely. In my view, Granules is a financially sound but slow-growing pharma business. The moat is not obvious from these numbers; there is no pricing power apparent when sales are shrinking and returns are only mid-teens. I would wait for a much lower price or clear acceleration in sales and profits before calling it a value investment.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer