Granules India gains after USFDA finds no observations at its Vizag facility

Granules India gained 2.92% to Rs 158.80 at 11:00 IST on BSE after the company said that no observations were found at its Vizag facility in Andhra Pradesh after the inspections were carried out by United States Food & Drug Administration.

The company made the announcement during market hours today, 21 December 2015.

Meanwhile, the BSE Sensex was up 125.18 points, or 0.49%, to 25,644.40.

On BSE, so far 2.15 lakh shares were traded in the counter, compared with an average volume of 3.33 lakh shares in the past one quarter.

The stock hit a high of Rs 161.35 and low of Rs 156 so far during the day. The stock hit a record high of Rs 164.45 on 1 December 2015. The stock hit a 52-week low of Rs 73.30 on 19 December 2014.

The stock had outperformed the market over the past one month till 18 December 2015, rising 6.23% compared with 0.14% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 27.78% as against Sensex's 2.67% fall.

The small-cap pharmaceutical manufacturing company has an equity capital of Rs 20.94 crore. Face value per share is Re 1.

Granules India announced that United States Food & Drug Administration (USFDA) completed the inspection of company's two facilities, one located at Vizag in Andhra Pradesh and another at Jeedimetla in Telangana. After the completion of USFDA's inspection of these facilities, no observations were found for Vizag facility and three observations were recorded for Jeedimetla facility. The company will respond to the observations in fifteen business days.

On consolidated basis, Granules India's net profit rose 40.3% to Rs 30.98 crore on 19.1% rise in net sales to Rs 366.44 crore in Q2 September 2015 over Q2 September 2014.

Granules India produces finished dosages, pharmaceutical formulation intermediates and active pharmaceutical ingredients.

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