Latest news with #GranulesIndia
Mint
4 days ago
- Business
- Mint
Missed the pharma rebound? Gland Pharma, Cipla among 8 stocks that jumped up to 28% since April
Pharma stocks have made a big comeback in recent months, with companies such as Granules India, Gland Pharma, Dr. Reddy's Laboratories, Natco Pharma, Aurobindo Pharma, and Cipla rebounding sharply from their April lows, emerging as some of the top turnaround champions in the 2025 market recovery. Granules India led the pack with a 28% recovery from its April low of ₹ 422 apiece, now trading at ₹ 533. Gland Pharma followed with a 27.8% rise to ₹ 1,633 apiece. Likewise, shares of Dr. Reddy's Laboratories have gained 26%, while JB Chemicals & Pharmaceuticals, Zydus Lifesciences, Natco Pharma, Aurobindo Pharma, and Cipla have recovered in the range of 11.5% to 23%. The strong recovery in the select counters has boosted the Nifty Pharma index to regain 13% from April lows. The recent rebound in pharma stocks has been driven by a combination of sector-specific tailwinds, improving global trade sentiment, and renewed investor appetite for risk. Additionally, attractive valuations at lower levels have also encouraged value buying, leading to a notable turnaround in several key counters. Notably, investor sentiment toward pharma stocks received a boost after the US government excluded generic drugs from the Most Favored Nation (MFN) Pricing Policy. In mid-May, US President Trump signed Executive Order 14297 to implement the MFN policy, which aimed to lower US prescription drug prices by benchmarking them against the lowest prices in other developed countries. However, the US Department of Health and Human Services later clarified that generics would be exempt from these price cuts, a significant relief for Indian biosimilar and generic drug manufacturers, for whom the US remains a key export market. India exports 54% of its pharmaceutical production, and nearly one-third of this goes to the United States. Of the exports to the US, about 85% comprise formulations, primarily generics, while sales from biosimilars and innovator drugs remain low, according to credit rating agency Crisil. Generic drugs account for 90% of prescription sales volume in the US but represent only 13% of total prescription spending. The agency also noted that generic drug prices in the US are among the lowest globally, even compared to economically comparable countries. Meanwhile, India has proposed a range of measures as part of the ongoing trade negotiations with the US, placing the pharmaceutical sector at the center of the discussions. Mint earlier reported, citing two people familiar with the matter, that India's proposals include the supply of low-cost complex generic medicines at sharply reduced prices, patent reforms to allow earlier entry of generics into the US, increased US-based manufacturing by Indian pharma firms of active pharmaceutical ingredients (APIs) and fixed dosage forms (FDFs), and tariff exemptions for life-saving and critical medicines imported into India from the US. The pharmaceutical sector delivered a turnaround performance in the quarter ending March, driven by strong growth in the India business. Companies covered by the domestic brokerage firm Axis Securities reported a growth of 11.5% YoY and 1.6% QoQ in the Q4FY25. Gross margins improved to 66.1%, reflecting a 95 bps increase YoY and a 40 bps rise QoQ. This improvement was supported by the launch of niche products, low single-digit price erosion, a higher contribution from the Indian business in the product mix, and stable raw material prices. On a QoQ basis, the US business stood at $2,240 million, showing 7.7% YoY growth in constant currency (CC) terms, driven by volume growth in the base portfolio and moderate performance from the top drug (gRevlimid). In the domestic market, the Indian Pharmaceutical Market (IPM) recorded 8% YoY growth in Q4FY25. Overall, the brokerage anticipates a strong pipeline in segments such as biosimilars, GLP-1, and peptides over the next three years. Companies with a higher share of chronic portfolios are outperforming the IPM. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Yahoo
29-05-2025
- Business
- Yahoo
Granules India Ltd (BOM:532482) Q4 2025 Earnings Call Highlights: Strategic Expansions and ...
Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Granules India Ltd (BOM:532482) reported a 2% revenue growth in Q4 FY25 compared to the same quarter last year, with a 5% increase from Q3 FY25. The company achieved a gross margin improvement, with Q4 FY25 gross margin at 63.4%, up by 333 basis points from Q4 FY24. Granules India Ltd (BOM:532482) has made significant progress in its R&D efforts, with a 20% increase in R&D investment, leading to a robust pipeline of 127 dossiers filed across various regions. The company is strategically expanding into high-growth areas such as oncology and peptide therapeutics, with the acquisition of Sen Chemicals marking a formal entry into complex peptide therapeutics. Granules India Ltd (BOM:532482) has received a core rating from Ecovi, placing it in the top 5% of pharmaceutical companies globally in its first corporate-level assessment, highlighting its commitment to sustainability. The FDA issued a warning letter to Granules India Ltd (BOM:532482) for its Gagillapur facility, which may temporarily impact the FDA's review of pending product submissions. Ongoing remediation measures at the Gagillapur facility have resulted in a slowdown of operations, impacting Q4 output and expected to continue for another quarter or two. Professional expenses have increased due to consultancy fees for remediation of US FDA observations, impacting EBITDA margins. The company's European sales have declined, primarily due to reduced demand for paracetamol API, which was a significant driver in the region. Granules India Ltd (BOM:532482) faces challenges in diversifying its geographical revenue mix, with North America accounting for a significant portion of total revenues. Warning! GuruFocus has detected 2 Warning Sign with BOM:532482. Q: What are the future investment plans for Sen Chemicals following its acquisition by Granules India? A: Dr. Krishna Prasad Chigurupati, Chairman and Managing Director, stated that there will be significant capital expenditure in Switzerland and a peptide R&D facility in Hyderabad. The integration and scale-up of capabilities will require further investments, with a clearer picture expected in the coming quarters. Q: Can you provide guidance on revenue and EBITDA for FY26? A: Dr. Krishna Prasad Chigurupati mentioned that while they cannot provide specific guidance, they expect performance to be better than the previous year despite ongoing operational slowdowns at the Gagillapur facility. Q: What is the strategy for the GLP-1 opportunity with Sen Chemicals? A: Dr. Krishna Prasad Chigurupati explained that the relationship with Sen Chemicals began with GLP-1 product development. Granules India plans to work on APIs for GLP-1s and develop formulations in India, targeting both innovators and generic markets. Q: How is Granules India addressing the decline in European sales? A: Dr. Krishna Prasad Chigurupati noted that the decline was primarily due to reduced paracetamol API sales. The company is shifting focus to formulations with higher margins and expects European sales to improve with new product launches. Q: What are the plans for diversifying geographical revenue beyond North America? A: Ms. Priyanka Chigurupati, Executive Director, stated that while North America remains a key market, Granules India is increasing filings in Europe and other regions to boost revenue from these markets. The company aims to expand its finished dosage and API business globally. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
28-05-2025
- Business
- Business Standard
Granules India consolidated net profit rises 17.26% in the March 2025 quarter
Sales rise 2.37% to Rs 1196.82 crore Net profit of Granules India rose 17.26% to Rs 152.03 crore in the quarter ended March 2025 as against Rs 129.65 crore during the previous quarter ended March 2024. Sales rose 2.37% to Rs 1196.82 crore in the quarter ended March 2025 as against Rs 1169.06 crore during the previous quarter ended March 2024. For the full year,net profit rose 23.74% to Rs 501.52 crore in the year ended March 2025 as against Rs 405.31 crore during the previous year ended March 2024. Sales declined 0.76% to Rs 4455.97 crore in the year ended March 2025 as against Rs 4490.16 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 1196.821169.06 2 4455.974490.16 -1 OPM % 21.0921.87 - 21.2119.06 - PBDT 230.30228.82 1 854.92754.56 13 PBT 166.80175.64 -5 629.42547.23 15 NP 152.03129.65 17 501.52405.31 24
Business Standard
28-05-2025
- Business
- Business Standard
Granules India standalone net profit declines 3.26% in the March 2025 quarter
Sales decline 21.75% to Rs 730.46 crore Net profit of Granules India declined 3.26% to Rs 94.05 crore in the quarter ended March 2025 as against Rs 97.22 crore during the previous quarter ended March 2024. Sales declined 21.75% to Rs 730.46 crore in the quarter ended March 2025 as against Rs 933.47 crore during the previous quarter ended March 2024. For the full year,net profit declined 26.74% to Rs 319.34 crore in the year ended March 2025 as against Rs 435.92 crore during the previous year ended March 2024. Sales declined 20.66% to Rs 2967.57 crore in the year ended March 2025 as against Rs 3740.13 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 730.46933.47 -22 2967.573740.13 -21 OPM % 16.0020.28 - 19.0321.43 - PBDT 133.91172.93 -23 542.71735.15 -26 PBT 95.94136.52 -30 396.48591.30 -33 NP 94.0597.22 -3 319.34435.92 -27
Reuters
28-05-2025
- Business
- Reuters
Paracetamol maker Granules India's profit drops as lower prices in US, Europe pinch
May 28 (Reuters) - Granules India ( opens new tab reported a drop in fourth-quarter adjusted profit on Wednesday, hurt by weak pricing and stiff competition in its key European and North American markets. Profit before exceptional items and tax fell to 1.67 billion rupees ($19.6 million) for the quarter ended March 31, from 1.76 billion rupees a year earlier. The drugmaker logged a one-time gain of 307.5 million rupees related to an insurance claim it received during the reported quarter. Including the gain, consolidated profit rose 17%. Granules, which generates about two-thirds of its revenue from North America and 19% from Europe, posted a 2% rise in its revenue from operations. For further earnings highlights, click. Granules, which holds a 30% share of the global paracetamol market, supplies the drug as an active pharmaceutical ingredient (API) and as a ready for consumption form in Europe, Canada, and South Africa. APIs are the active and key components in a drug that produce the intended therapeutic effects. Indian API makers have been grappling with weak pricing in key European and North American markets due to tough competition, even as global drugmakers turn to India to limit their reliance on Chinese contractors. PEER COMPARISON * 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 JANUARY TO MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 85.3790 Indian rupees
