Granules India Q2 profit falls on weak demand in North America, Europe
Nov 6 (Reuters) -Drugmaker Granules India GRAN.NS reported a 4.8% fall in its second-quarter profit on Wednesday, dragged by a slow demand in the North American and European markets.
Consolidated profit fell to 972.3 million rupees ($11.54 million) for the quarter ended Sept. 30, from 1.02 billion rupees a year earlier.
Granules, which generates 66% of its revenue from North America and 19% from Europe, posted an 18.7% fall in its revenue from operations.
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KEY CONTEXT
The company said its quarterly sales were impacted by a voluntary pause in manufacturing and distribution from its Gagillapur facility near Hyderabad, which deals with finished dosage and pharmaceutical formulations, due to an inspection by the U.S. Food and Drug Administration.
The drugmaker's revenue fell due to weak sales and price cuts from competition, despite expectations that Indian active pharmaceutical ingredient, or API, makers such as Granules would benefit from a rising demand in Europe and the U.S.
PEER COMPARISON
Valuation (next 12 months) | Estimates (next 12 months) | Analysts' sentiment | ||||||||
RIC | PE | EV/EBITDA | Price/Sales | Revenue growth (%) | Profit growth (%) | Mean rating* | # of analysts | Stock to price target** | Div yield (%) | |
Granules India | GRAN.NS | 19.49 | 11.50 | - | 14.87 | 36.32 | Strong Buy | 3 | 0.85 | 0.27 |
Glenmark Life Sciences | GLEM.NS | 23.44 | 15.72 | - | 11.92 | 12.61 | Buy | 6 | 0.98 | 2.12 |
Laurus Labs | LAUL.NS | 56.43 | 22.49 | - | 13.87 | 86.09 | Hold | 11 | 1.18 | 0.16 |
Divi's Laboratories | DIVI.NS | 65.63 | 46.64 | 15.77 | 15.93 | 26.45 | Hold | 23 | 1.29 | 0.52 |
* 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
JULY-SEPTEMBER STOCK PERFORMANCE
**
**
-- All data from LSEG
-- $1 = 84.2475 Indian rupees
GRAN JULY-SEPT https://tmsnrt.rs/3UEtkyq
Reporting by Yagnoseni Das in Bengaluru; Editing by Rashmi Aich
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