Anil Singhvi recommends buy on Granules India with targets of Rs 328-Rs 334-Rs 340 and stop-loss Rs 318

Anil Singhvi said that Granules India is a part of Futures and Options markets now. The Market Guru said there are 2 -3 reasons that could be a big trigger for the stock. Paracetamol demand has been moving up as Covid issue is increasing over the past few days and there are fever / flu concerns among people. Also, due to cold and cough, people who are ill get worried that whether it is a normal flu or the fever is because of Covid. This is creating a lot of confusion and worry among people who face the illness. Also, prices of Paracetamol and 2 API which Granules makes, has moved up 60%-65% in the past 2 months.

Singhvi highlights 2 APIs required to make this Drug forms 27% of the total sales of Granules. The 2 APIs are required to make Paracetamol. With the prices moving up, this counter will benefit going forward considering the strong demand. So, it is not only the demand buy also the pricing power because of which the stock will remain in focus.

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So, Q4 results of the company are expected to be extremely strong. Investors should invest in this stock slowly and steadily. Also, in a weak market, the Pharma Sector will act as a strong defensive bet for investors.

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Singhvi said the stock should be purchased with stop-loss of Rs 318 and price targets of Rs 328-Rs 334-Rs 340. Granules India stock can be accumulated for a positional trade till results, dips in the stock could be used as a buying opportunity.