Buy Granules India, target Rs 175 : Vikas Sethi

Vikas Sethi of Sethi Finmart has Buy call on Granules India Ltd. with a target price of Rs 175 .The current market price of Granules India Ltd. is Rs 122.7 Time period given by analyst is year for Granules India Ltd. price to reach defined target. The company is present across the entire manufacturing value chain from APIs to formulations to finished dosages. This company is a preferred integrated supply to major MNC pharma companies. The company has done well over the past few years and this performance would continue over the next few years. The recent inspection of its Hyderabad facility without any observation is also a pretty a big positive and this company is expected to continue to grow at a CAGR of 25% over the next few years. Its financials are also pretty strong. The company enjoys a pretty healthy balance sheet with a pretty strong return ratios, pretty high margins.