Fri Sep 13 14:48:07 UTC 2024: ## Granules India Faces USFDA Observations, Motilal Oswal Maintains Buy Rating
**Mumbai, India –** Pharmaceutical company Granules India (GRAN) has received a Form 483 with six observations from the US Food and Drug Administration (USFDA) following an inspection of its Gagillapur site. The observations pertain to issues such as cleaning and maintenance, inadequate root-cause analysis, document management, and in-process controls.
Motilal Oswal, a leading research firm, has maintained a “Buy” rating on Granules India despite the observations. The firm expects a 36% earnings CAGR over FY24-26 and values the company at 18x 12M forward earnings, resulting in a target price of INR680.
While the observations are a cause for concern, Motilal Oswal remains optimistic about the company’s long-term prospects. Notably, there are no major products pending approval from the Gagillapur site, and the impact of the remediation measures on the ongoing business is yet to be determined.
Investors are advised to monitor the USFDA’s classification of the inspection to assess the sustainability of compliance with regulatory guidelines.
**Disclaimer:** This news article is for informational purposes only and does not constitute investment advice. Consult with a certified financial advisor before making any investment decisions.
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