There are a few stocks which have the salutary habit of effortlessly showering gains on their shareholders.
Granules India is one of them.
In the past 24 months, the stock has given a mind-boggling return of 236%. The YoY return is itself a hefty 75%.
We earlier saw that Motilal Oswal has issued a detailed research report in which it has described Granules as being at a “game changer” and “strategic inflection point”.
We also saw that renowned experts have described the stock as being at a “perfectly uptrending” position from the perspective of technical analysis. The stock is claimed to be a good “techno-funda” pick.
Now, the experts at Emkay have claimed that the in-licensing deal entered into by Granules with US pharma Windlas for 4 ANDA’s is a “small deal for industry but a giant leap for Granules”.
Emkay’s logic is that the deal will “strengthen Granules’ launch pipeline in the US and its eventual transition into a more ‘pure-play’ formulations player”. It is also claimed that this will set the stage for Granules “to move to next level of growth with ongoing investments in organically developing a generic ANDA pipeline”.
This theory was corroborated by Krishna Prasad Chigurupati, Granules India CMD. “Product in-licensing is a strategic maneuver to accelerate our maneuver expansion plans in the USA by fostering long term partnerships” he said.
Emkay has projected a target price of Rs. 162, which is more or less equal to the target price predicted by the technical analysis experts.
It is also worth noting that the FDA recently gave the green signal to Granules with respect to its Jeedimetla plant in Telangana. The green signal, in the form of an “Establishment Inspection Report” removes the overhang from the stock, experts say.
So, it does look like Granules India is on the right path to attain the lofty goal of “100-bagger” awarded to it by Motilal Oswal!