{"id":834,"date":"2020-03-06T10:37:33","date_gmt":"2020-03-06T10:37:33","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=834"},"modified":"2020-03-06T10:37:33","modified_gmt":"2020-03-06T10:37:33","slug":"see-a-gap-of-2-3-days-without-inventory-material-shipments-arriving-by-sea-krishna-chigurupati-granules-india","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/03\/06\/see-a-gap-of-2-3-days-without-inventory-material-shipments-arriving-by-sea-krishna-chigurupati-granules-india\/","title":{"rendered":"See a gap of 2-3 days without inventory; material shipments arriving by sea- Krishna Chigurupati, Granules India"},"content":{"rendered":"<p style=\"font-weight: 400;\"><strong>Update\u00a0on the Indian Equity Market:<\/strong><\/p>\n<p style=\"font-weight: 400;\">On Thursday, NIFTY closed marginally higher (+0.2%) at 11,269 after a continuous losing streak in the previous days. The top gainers in NIFTY50 were Yes Bank (+26.9%), Eicher Motor (+2.9%) and Kotak Bank (+2.6%), whereas Zeel (-5.6%), Hindalco (-2.9%) and Infratel (-2.6%) were the top losers. Among sectoral indices, PSU Bank (+1.4%), FMCG (+1.1%) and Pharma (+0.7%) were the gainers while Realty (-1.1%), Metal (-0.8%) and Media (-0.7%) closed in red.<\/p>\n<p style=\"font-weight: 400;\"><u><br \/>\nExcerpts from an interview of Mr. Krishna Prasad Chigurupati, Chairman and MD- Granules India with CNBC-TV18 dated \u2013 3<sup>rd<\/sup>\u00a0March 2020:<\/u><\/p>\n<ul style=\"font-weight: 400;\">\n<li>He said, \u201cWe just have to apply to the Directorate General of Foreign Trade (DGFT) for permissions and then they would give us permission to export based on past exports\u201d.<\/li>\n<li>In the worst case, maybe some of the shipments from this month may spill over to next month. Otherwise, two quarters put together he doesn\u2019t see any big impact.<\/li>\n<li>Most of the intermediates or the raw materials come from China. For example with regards to Paracetamol &#8211; the key intermediate comes from China and there has been a disruption or delay for about a week.<\/li>\n<li>They have inventory for another 10 days but materials are arriving. So, there could be a gap of about 2-3 days without inventory but the shipments are already on the way and they should be getting them by next week. So, there is no issue on the inventories side.<\/li>\n<li>It depends on how quickly the government acts on awarding permission to exports so there could possibly be little spill over into the next quarter. There could be a little fall in 4QFY20 which will be made up in the next quarter.<\/li>\n<li>Airlifting of some products is happening. Air freights have gone up, the prices have gone up and there could be an increase in the cost of raw materials.<\/li>\n<li>As far as their products are concerned there is absolutely no issue, everything is coming by sea. So, he doesn\u2019t see any impact on margins.<\/li>\n<li>They supply APIs to Indian companies, Paracetamol especially, but formulations are all for exports. They never sell any formulations within India.<strong>\u00a0<\/strong><\/li>\n<\/ul>\n<p style=\"font-weight: 400;\"><strong>Consensus Estimate: (Source: market screener website)<\/strong><\/p>\n<ul style=\"font-weight: 400;\">\n<li>The closing price of Granules India was\u00a0\u20b9\u00a0178\/- as of 05-March-2020.\u00a0 It traded at 13x\/ 11x\/ 9x the consensus earnings estimate of \u20b9 13.6\/ 15.5\/ 19.2 for FY20E\/FY21E\/FY22E respectively.<\/li>\n<li>The consensus target price for Granules is \u20b9 172\/- which implies a PE multiple of 9x on FY22E EPS of \u20b9 19.2\/-.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update\u00a0on the Indian Equity Market: On Thursday, NIFTY closed marginally higher (+0.2%) at 11,269 after a continuous losing streak in the previous days. The top gainers in NIFTY50 were Yes Bank (+26.9%), Eicher Motor (+2.9%) and Kotak Bank (+2.6%), whereas Zeel (-5.6%), Hindalco (-2.9%) and Infratel (-2.6%) were the top losers. Among sectoral indices, PSU [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[336,85],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/834"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=834"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/834\/revisions"}],"predecessor-version":[{"id":835,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/834\/revisions\/835"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}