granules ltd......

Granules India is a merchant exporter of bulk drugs like Paracetamol, Guaifenesin and Chloro Pheniramine Maleste. It has been exporting mainly to the developed markets such as U.S.A., Europe, Mexico and Hongkong.Company has commenced the Commercial Production w.e.f. March 10, 2006, from its API plant situated at Bonthapally, Medak Dist., Andhra Pradesh, with a manufacturing capacity of 8000 TPA of Paracetamol. The unit is a 100% EOU. The company registered 53 per cent rise in net profit at Rs 2.22 crore for the quarter ended December 2005, as against Rs 1.45 crore recorded in the corresponding quarter of the previous year. The company's sales increased by 43 per cent to Rs 44.44 crore as against Rs 31.15 crore in the same period last financial year.Granules India is moving up on strong export impetus. Granules India, engaged in the manufacture of compressible granules as a value-added product to the pharmaceuticals formulation players, is witnessing steady growth in its sales and exports. It has established itself as a favoured partner with an array of pharmaceuticals companies world over in the API outsourcing market. With its latest facilities and several approvals, including USFDA for its plant, the company has gained an edge over its competitors in the international arena. A few global pharmaceutical companies posses the capability to provide granulation solutions in commercial batch sizes at a time when globally granulation outsourcing is increasing for cost consideration. Granules India is among a few global companies offering a product range comprising PH solution in combination with others. The company's ability to provide tablets in batch sizes has also extended its clout in the outsourcing market. The company has raised additional fund through issue of warrants to promoters at a price of Rs 102.50 to carry on with the expansion work.The company has issued GDR at a price of .30 which comes to around Rs 103.50.The proceeds of this issue were mainly being used for expansion projects that were in various stages of implementation and were yet to contribute to the earnings.The script is trading at P/E of 14 discounting FY06-07 expected EPS of 5.8 and 11 discounting FY07-08 expected EPS of 7.25 which looks reasonable.Technically,the script has fallen hard from the levels of 124 and is now trading around 84 levels.It has major support around 80 levels which looks unlikely to break.So downside looks limited.Moreover the company is expected to post good result for quarter ending 31st March,2006

one can buy 50% right now n 50% at 80 levels