In Zee Business special edition of AajKe2000 show, Managing Editor Anil Singhvi recommends to Buy Granules India shares as the National Pharmaceutical Pricing Authority (NPPA) allowed a 50 per cent price hike on Ibuprofen drug mentioning it a one-time hike as an exceptional measure.
The authority has also allowed a 50 per cent price rise on Carbamazepine and Ranitidine drugs.
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Singhvi said, this news will have a huge impact on the company’s profitability by at least an upside of 10-15 per cent. He sets a target of Rs 350, 355, and 360 per share with a stop loss of Rs 332 apiece.
The NPPA has allowed an upward revision of the ceiling price of nine formulations of three drugs, these drugs are low-priced. It added, these drugs have been under repeated price control and are used as the first line of treatment.
किस खबर के दम पर एक्शन दिखाने को तैयार हुआ Granules India?
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In this regard, the market analyst Siddhart Sedani says, the worldwide price of ibuprofen wasn’t stable in the last 6 months, and since it has become stable now there has been a price revision from NPPA, which could be termed as the most positive news for the stock.
He added, Granules India is a good company and makes API in ibuprofen and paracetamol. It was stagnant for the last few months but would surge in terms of profit on the back of this price revision.
Sedani has been recommending this stock when the price was around Rs 180 per share level, at present, the stock has become a multi-bagger counter.
Similarly, according to Rakesh-Kurnal’s chart corner, the shown a good rally but is under correction since December 2020. Today, on the back of this price revision news there has been a breakout in the neckline of Rs 335-336-337 in this stock and establishes the end of correction and turnaround from here.
The scrip has also shown a breakout of double-bottom pattern, and expect it would surge to Rs 336 per share levels, with a stop loss of Rs 336 apiece, they point out as their target and support.