Motilal Oswal has buy call on Granules India Ltd. with a target price of Rs 420. The current market price of Granules India Ltd. is Rs 343.4. Granules India Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 8913.82 Crore) operating in Pharmaceuticals sector. Financials For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 802.59 Crore, down -6.78 % from last quarter Total Income of Rs 860.92 Crore and up 28.95 % from last year same quarter Total Income of Rs 622.40 Crore. Company reported net profit after tax of Rs 127.57 Crore in latest quarter. The brokerage lowers FY22E/FY23E EPS estimate by 11%/10% to factor in a price increase/reduced availability of KSM like para-aminophenol (PAP)/acetic anhydride and lower operating leverage. We value GRAN at 15x 12-months forward earnings to arrive at our TP of INR420. It remains positive due to its: a) healthy ANDA pipeline for the US market, b) increasing share in the FD/PFI segment, and c) geographic expansion.