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Granules India reported a surge in first-quarter profit on Tuesday, helped by strong demand in the European and North American markets.

The company consolidated profit of 1.35 billion rupees ($16.1 million) for the quarter ended June 30, a near three-fold jump from a year ago.

Revenue from operations rose 20% to 11.80 billion rupees, driven by its active pharmaceutical ingredient and finished dosages segments.

KEY CONTEXT

Granules, which holds a 30% share of the global paracetamol market, sells the drug as an API and finished dosage - ready for consumption product - in Europe as well as in Canada and South Africa. APIs are the active elements in a drug which are responsible for the desired health effects.

Paracetamol is a significant contributor to Granules' total revenue. However, the company did not give latest share of paracetamol sales in the quarter.

Sales for Indian API makers continue to be boosted from strong demand in Europe and North America, and are also expected to benefit as global drugmakers seek to limit their reliance on China.

PEER COMPARISON

Estimates (next 12 Analysts' sentiment

months)

RIC PE EV/EBI Revenue Profit Mean # of Stock to Div

TDA growth (%) growth rating* analysts price yield

(%) target** (%)

Granules India 22.16 12.47 12.82 35.80 Strong 4 1.20 0.27

Buy

Glenmark Life 18.70 12.69 12.64 19.08 Buy 5 0.89 3.79

Sciences

Laurus Labs 55.35 21.85 14.10 99.10 Hold 11 1.16 0.18

Divi's 58.98 42.49 15.39 27.45 Hold 22 1.31 0.61

Laboratories

* 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

APRIL TO JUNE STOCK COMPARISON

-- All data from LSEG

-- $1 = 83.7325 Indian rupees