Shares of Granules India experienced a notable surge of nearly 4% in early trade after a significant block deal worth Rs 252.40 crore transpired on May 22. Approximately 62 lakh shares, equivalent to a 1.8% stake in the company, changed hands during the block deal.
The deal was executed at a floor price of Rs 405 per share, marking a slight discount of over 1% from the previous close. Although the buyers and sellers involved in the transaction were not immediately identified, the market responded positively to the development.
As of 09:44 am, Granules India shares were trading at Rs 416.25 on the National Stock Exchange (NSE), further reflecting investor enthusiasm following the block deal.
Last week, Granules India reported an 8% year-on-year increase in its net profit for the March quarter of FY24, amounting to Rs 129.6 crore compared to Rs 119.6 crore in the corresponding period last fiscal year. However, the company’s revenue witnessed a slight decline of 1.7% to Rs 1,175.7 crore from Rs 1,195.5 crore in the year-ago period.
This decline in revenue was attributed to lower sales of paracetamol and price erosion. Granules India specializes in manufacturing active pharmaceutical ingredients (API) and holds a significant 30% share of the global market for paracetamol. The company’s operations span both API production and the manufacturing of finished dosage forms, making it a key player in the pharmaceutical industry.
The surge in Granules India’s shares following the block deal highlights investor confidence in the company’s long-term growth prospects, despite short-term fluctuations in revenue. With its strong position in the global paracetamol market and ongoing efforts to diversify its product portfolio, Granules India remains well-positioned to capitalize on emerging opportunities in the pharmaceutical sector.
“While the fiscal year numbers were below expectations due to a cyber incident and low paracetamol demand, we are very excited about the way our strategies for the future are playing out and look forward to the upcoming years,” Krishna Prasad Chigurupati, Chairman, and Managing Director of Granules India said in an exchange filing.
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