Granules India gains on bargain hunting

Granules India rose 2.96% to Rs 104.20 at 14:41 IST on BSE on bargain hunting after the stock slumped 9.84% yesterday, 9 January 2017, triggered by the company receiving 11 observations from Portuguese drug regulator.

The announcement was made after market hours on Friday, 6 January 2017.

Meanwhile, the BSE Sensex was up 157.70 points, or 0.59%, to 26,884.25.

On the BSE, so far 3.51 lakh shares were traded in the counter, compared with average daily volumes of 1.69 lakh shares in the past one quarter. The stock had hit a high of Rs 105.80 and a low of Rs 102 so far during the day.

The stock hit a 52-week high of Rs 151.15 on 14 July 2016. The stock hit a 52-week low of Rs 91.45 on 9 November 2016. The stock had underperformed the market over the past 30 days till 9 January 2016, falling 9.92% compared with the 0.08% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 15.84% as against Sensex's 4.83% decline.

The small-cap company has equity capital of Rs 22.12 crore. Face value per share is Re 1.

Shares of Granules India fell 9.84% to settle at Rs 101.20 yesterday, 9 January 2017, after the company announced that Infarmed, the Portuguese drug regulator, had conducted a renewal inspection on the company's facility located at Gagillapur, Telangana. In this respect, the company has received the inspection report from Infarmed with eleven observations. The Gagillapur facility manufactures Pharmaceuticals Formulation Intermediates (PFIs) and Finished Dosages (FDs).

The company has initiated necessary steps to address the observations of the inspection agency and will submit its response with a corrective and preventive action plan within the stipulated time, Granules India said. The company will also be requesting the Infarmed for re-inspection of the Gagillapur facility at the earliest. The company is committed to comply with all the required regulatory requirements and follow the best practices of the industry. The company acknowledges the observations as areas of continuous improvements, it added.

Granules India's consolidated net profit rose 26.5% to Rs 40.82 crore on 3.08% growth in net sales to Rs 363.57 crore in Q2 September 2016 over Q2 September 2015.

Granules India is a vertically integrated pharmaceutical company, headquartered in Hyderabad, India. It manufactures active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates (PFIs) and finished dosages (FDs).

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