Multibagger Granules India share price tumbles over 4% on six US FDA observations at its Gagillapur facility

Multibagger stock: Granules India share price tumbled over 4% on Monday's session due to the company's Gagillapur facility in Hyderabad, Telangana receiving six observations from the US Food and Drug Administration (USFDA).

The inspection took place between August 26th and September 6th, 2024. Both the Current Good Manufacturing Practice (cGMP) and Pre-Approval Inspection (PAI) processes were covered in the recent inspection. Granules India is dedicated to promptly addressing the observations and will submit its response to the USFDA within the specified timeframe. The Gagillapur facility remains integral to the company's global operations, guaranteeing the delivery of top-notch pharmaceutical products to global markets.

“The Gagillapur facility is critical facility for granules and play a vital role in the company’s global operations with total FD capacity of 26.8 B n Dosages and PFI (Intermediate) capacity of 23200 TPA. We continue to monitor the company's response to USFDA for the observations,” ICICI Direct Research in its report.

During the first quarter that concluded on June 30, 2024, Granules India's profit after tax increased by nearly three times year over year to ₹135 crore. In the April–June quarter of the previous fiscal year, the pharmaceutical company declared a profit after tax (PAT) of ₹48 crore.

The Hyderabad-based company reported in a regulatory filing that its revenue from operations increased to ₹1,180 crore for the period under review from ₹985 crore in the same period last year.

Granules India share price

On Monday's session, Granules India share price opened at ₹674.10 apiece, the stock touched an intraday low of ₹656, and an intraday high of ₹677.75 per share on the BSE.

As per trendlyne data, Granules India share price increased by 115.61% over the past year, surpassing its sector by 51.2%. The company has a market capitalisation of ₹16,226.59 crore on BSE.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the pharma counter has seen strong positive traction in the recent months but some profit booking is seen in today's session. However the overall trend remains positive and any dip towards ₹630 - 640 is a buying opportunity whereas ₹730 as next resistance.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.