There is shortage of Paracetamol and Ibuprofean due to sudden changes in China’s Zero covid policy. People in neighbouring countries like Singapore/Australia is sending these medicine to their relative in mainland China as per the NYTimes report.
Additionally,France is also reporting shortage of paracetamol. Granules does not sell their products in China/France directly, but they are planning to sell Paracetamol in Q3/Q4 in Europe. As winter session in Europe/US is middle, it will take few months to normalise situation.
Based on this, it seems that paracetamol/Ibuprofean prices will remain high, boosting Granules sales/Profit. I wont be surprise if they post highest ever quarterly profit in Q4(Sept 20- PAT 164cr).
Note- Invested.
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