Granules India Limited
Granules India Limited Fundamental Analysis
Granules India Limited (GRANULES.NS) shows moderate financial fundamentals with a PE ratio of 26.69, profit margin of 10.72%, and ROE of 14.70%. The company generates $50.9B in annual revenue with weak year-over-year growth of -0.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GRANULES.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakGRANULES.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakGRANULES.NS trades at a premium to fair value.
Growth Score
ModerateGRANULES.NS shows steady but slowing expansion.
Financial Health Score
ExcellentGRANULES.NS maintains a strong and stable balance sheet.
Profitability Score
WeakGRANULES.NS struggles to sustain strong margins.
Key Financial Metrics
Is GRANULES.NS Expensive or Cheap?
P/E Ratio
GRANULES.NS trades at 26.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GRANULES.NS's PEG of 4.21 indicates potential overvaluation.
Price to Book
The market values Granules India Limited at 3.66 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.67 times EBITDA. This signals the market has high growth expectations.
How Well Does GRANULES.NS Make Money?
Net Profit Margin
For every $100 in sales, Granules India Limited keeps $10.72 as profit after all expenses.
Operating Margin
Core operations generate 24.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.70 in profit for every $100 of shareholder equity.
ROA
Granules India Limited generates $7.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Granules India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Granules India Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
GRANULES.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How GRANULES.NS Stacks Against Its Sector Peers
| Metric | GRANULES.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.69 | 29.45 | Neutral |
| ROE | 14.70% | 779.00% | Weak |
| Net Margin | 10.72% | -24936.00% (disorted) | Strong |
| Debt/Equity | 0.45 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.28 | 4.65 | Neutral |
| ROA | 7.86% | -19344.00% (disorted) | Weak |
GRANULES.NS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Granules India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.38%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
57.26%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
69.33%
Industry Style: Defensive, Growth, Innovation
High Growth