AI Summary
✦ ClarthaGranules India is a pharmaceutical manufacturer producing APIs, formulation intermediates, finished dosages, and peptide CDMO services. APIs and PFIs support its core supply business, while finished tablets, capsules, oral solutions, and suspensions drive formulation revenue. Peptide development and manufacturing adds a newer, specialized growth platform. Revenue increased 19.8% year-on-year, while profit rose 18.6%, with improving margins indicating favorable operating leverage. Debt/equity of 29.73 implies extreme leverage, which can materially amplify financial risk and distort ROE interpretation; ROE is unavailable. The company’s 32.0x P/E appears rich relative to its 19.8% revenue growth and 18.6% profit growth. Improving margins and peptide CDMO expansion support earnings growth, but leverage and valuation leave limited room for execution disappointments. The investment case remains fair-to-rich, with neutral sentiment reflecting uncertainty around debt sustainability and whether specialized peptide growth can justify the premium.
Valuation Metrics
Trading 63.9% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +2.62). Confidence: 76%.
Live forward EPS implies next-12-month EPS of ₹39.71. Applying the stock's normalized valuation corridor produces a fair range of ₹661.97 to ₹857.74, with base value near ₹777.12 (-10.0% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹39.71
Forward P/E
21.8x
Base Fair Value
₹777.12
Fair Range
₹661.97 - ₹857.74
Upside To Base
-10.0%
Estimate Source
Live forward EPS
Growth Estimate
+53.4%
5Y Average
16.64
Current
32.08
Overvalued
21.60
Undervalued
16.67
5Y Average
8.96
Current
17.28
Overvalued
11.16
Undervalued
6.04
5Y Average
1.97
Current
3.80
Overvalued
2.27
Undervalued
1.68
Peers & Comparison
Sector: Health Care · Theme: Pharmaceuticals
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
DR. REDDY S LABORATORIES DRREDDYPharmaceuticals | -5.6% | 10.0% | 29.2x Undervalued | -76% vs avg | -1.3% |
AUROBINDO PHARMA LTD AUROPHARMAPharmaceuticals | +16.3% | 10.6% | 25.9x Undervalued | -78% vs avg | +52.8% |
ALKEM LABORATORIES LTD. ALKEMPharmaceuticals | +14.6% | 15.6% | 28.7x Undervalued | -76% vs avg | +3.9% |
GLAXOSMITHKLINE PHARMA LT GLAXOPharmaceuticals | +16.6% | 27.0% | 41.3x Undervalued | -66% vs avg | -6.2% |
DABUR INDIA LTD DABURFMCG - Personal Products | +10.6% | 14.6% | 37.3x Undervalued | -69% vs avg | -17.9% |
COFORGE LIMITED COFORGEIT Services & Consulting | +49.9% | 9.6% | 37.2x Undervalued | -69% vs avg | +11.9% |
MAX FINANCIAL SERV LTD MFSLInsurance | -40.2% | 0.2% | 619.4x Premium | +416% vs avg | -4.6% |
BHARAT FORGE LTD BHARATFORGIron & Steel | +18.7% | 4.0% | 140.9x Premium | +17% vs avg | +73.6% |
GRANULES INDIA LIMITED trades at a discount (31.9x vs peer avg 120.0x), suggesting potential undervaluation relative to the Pharmaceuticals cohort. Peers include DR. REDDY S LABORATORIES, AUROBINDO PHARMA LTD, ALKEM LABORATORIES LTD. — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹802 CrJun 2026Latest net profit
₹72 CrJun 2026Latest EPS
₹2.90Jun 2026Net margin
16.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 821 | 1,009 | 984 | 940 | 852 | 568 | 842 | 768 | 810 | 892 | 895 | 877 | 802 |
| Expenses + | 664 | 801 | 738 | 751 | 675 | 465 | 674 | 651 | 667 | 680 | 701 | 702 | 670 |
| Operating Profit | 157 | 208 | 247 | 189 | 177 | 103 | 168 | 117 | 144 | 211 | 194 | 175 | 131 |
| OPM % | 19% | 21% | 25% | 20% | 21% | 18% | 20% | 15% | 18% | 24% | 22% | 20% | 16% |
| Other Income + | 0 | 1 | 1 | 3 | 2 | 3 | 6 | 61 | 1 | 8 | 12 | 17 | 14 |
| Interest | 15 | 18 | 20 | 20 | 18 | 15 | 17 | 13 | 14 | 17 | 15 | 16 | 10 |
| Depreciation | 35 | 36 | 36 | 36 | 36 | 35 | 38 | 38 | 40 | 41 | 41 | 44 | 39 |
| Profit before tax | 107 | 156 | 192 | 137 | 126 | 56 | 119 | 127 | 91 | 162 | 150 | 132 | 97 |
| Tax % | 25% | 26% | 26% | 29% | 25% | 26% | 24% | 26% | 24% | 26% | 26% | 25% | 26% |
| Net Profit + | 80 | 116 | 143 | 97 | 94 | 41 | 90 | 94 | 69 | 121 | 112 | 99 | 72 |
| EPS in Rs | 3.30 | 4.79 | 5.89 | 4.01 | 3.87 | 1.71 | 3.72 | 3.88 | 2.86 | 4.97 | 4.60 | 3.99 | 2.90 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).