Thanks Manish. Let me frame the question correctly. How the price of derivatives has a impact on underlying share price (vice versa)? Is it due to hedging ? suppose somebody buy call options but to hedge them sold some shares in cash market. thus cash market price get affected. Please correct if i am wrong.
PS: Always believe no matter what , stock price will always follow the earning 
Upper mentioned question is from curiosity as granules listed in FnO.
amitayu,
as manish mentioned there is leverage in f and o trades. someone having 10 rs in his pocket can buy or even sell maybe 100 rs worth of stock if it is in f and o. and if he gets it wrong he will rush to exit his position to avoid getting wiped off. And there will be many such guys. Imagine its impact on stock price atleast in short term. Some people would highlight some news items or links providing positive or negative newsflow to suit their purposes and would ignite volatility.
Earnings updates are available only every three months whereas market related hormonal bursts are there almost every hour. And hence stocks in f&o suffer from higher volatility atleast in shorter term. In longer term prices usually follow earnings.
techno funda is a combination of technicals (chart readings) and fundamentals.
Any views on the news article and possible impact on granules or other pharma stocks.?http://economictimes.indiatimes.com/markets/stocks/news/crisil-rings-warning-bell-for-pharma-on-us-slowdown/articleshow/52317420.cms
I read here that the promoters were involved in circular trading. Is that a downer?
http://iias.in/downloads/Broker%20operator%20nexus%20-%20final%20file.pdf
Link also mentions granules & Sanjay Dangi on operator promoter nexus.
(invested)
The involvement of Granules MD Mr C Krishna Prasad in 2002 SEBI case of circular trading is not a new finding and has been known for the last 6 years or so.
I was part of a stock advisory service by a reputed investor who last year recommended Granules to the members. About this issue, his view was that this was an old case (2002) and after that Granules has executed well so this particular instance should not cause much grief.
Given the stock performance over the last year, I think he was right so far…
After knowing this information, the only thing which has affected me is my exit point definition.
Assuming the hypothesis of the grand eps growth plays out for granules in next 5-7 years, I earlier planned to exit at a hypothetical expanded PE ratio of 70-85. But now I would exit the stock if pe ratio touches 50-60.
@nishantkandoi, suggesting a slightly diff approach. Here are my views.
First of all, the incident dates back to 2002-03 which is 12/13 yrs back. Indian stock market is filled with several such scams since last many decades. Small investors are still gullible and tend to rush in/out with herds mentality. Thankfully, with the market regulator has evolved over the years, has got more teeth and lets hope that such incidents become isolated ones.
As for Granules, we already know that there are several triggers which are likely to play out over next 4-5 years. IMHO, rather than tracking only PE, it would be sensible to track if the triggers are playing out as expected and then decide accordingly. I believe it has got a long way to go.
Disc : Invested and views may be biased.
I remember RJ saying that when he invested in Lupin it was considered having poor corporate governance but things did change and it became mega multibagger. not taking any parallel here but things have changed and promoted know the power of their currency i.e. stock. I must acknowledge that I did decide to sell Granules at many occasions.
Disc: invested
Granules India Limited has informed the Exchange regarding a press
release dated May 30, 2016 titled “Granules India’'s Jeedimetla plant
received Establishment Inspection Report (EIR) from the US FDA”.
Granules India gets EIR from USFDA for Jeedimetla plant
Disc : Invested
Granules Pharmaceuticals entered into an exclusive agreement with USpharma Windlas, LLC for product in-licensing
**
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New Delhi, Jun 9 (PTI) Pharma firm Granules India today said its subsidiary has entered into a product in-licensing pact with USpharma Windlas, LLC to market and distribute four products in the US.
USpharma Windlas will receive milestone payments and the share of profits from commercial sales.
In a BSE filing, Granules India said: “Its wholly-owned subsidiary Granules Pharmaceuticals, Inc.,(GPI) has acquired the exclusive rights from USpharma Windlas, LLC to market and distribute four products in the USA”.
USpharma Windlas LLC is a joint venture between USpharma Ltd and Windlas Healthcare Pvt Ltd.
It added: "USpharma Windlas through its subsidiaries holds Abbreviated New Drug Application (ANDA) for Fingolimod, Prasugrel, Dronedarone and Lurasidone. USpharma Windlas believes to be a first applicant to file ANDAs containing paragraph IV certifications for three of these products."Granules said it will be responsible for the marketing and distribution of the products in the US, subject to the final approval by the US Food and Drug Administrations (USFDA).
“Product in-licensing is a strategic maneuver to accelerate our expansion plans in the USA by fostering long term partnerships,” Granules India CMD Krishna Prasad Chigurupati said.
Quoting IMS data, Granules said the four product had annual sales of USD 4.4 billion.
The company’s shares were trading 2.11 per cent higher at Rs 142.70 on BSE.
I am not able to find the details of these ANDA filings ( Fingolimod, Prasugrel, Dronedarone and Lurasidone ) by uspharma windlas in pharmacompass. Is anybody able to find the details in orange book or pharmacompass?. @crazymama can you please help.
Hello Harsha,
I did double-check, but there is no mention of any approvals either tentative/final for Windlas.
Using all possible combinations of Windlas, USpharma i could not find any ANDA Holder.
http://www.windlashealthcare.com/countries-products-dossiers.html
Windlas Healthcare is focused primarily on developed markets, and USA is the highest priority market. We have already secured US FDA approval in 2014 we were audited again in 2016. We have already filed 4 ANDAs in USA in 2014 and aim to file 5-7 ANDAs each year.
http://www.windlashealthcare.com/milestones.html
Company founded as wholly-owned subsidiary of Windlas Biotech Limited at Dehradun, Uttarakhand, India
Tano Capital invests in Windlas Biotech Limited
Inspected and approved by health regulatory authorities -
USFDA : June 2014, Feb 2016 (Zero 483s)
Ukraine : 2012, 2014
Kenya: 2013
Ivory Coast: 2012
Present - Shipping products for India, Myanmar, Ukraine, Vietnam
Based on the above, my inference is that they most likely have actually filed their ANDA’s which have been accepted by USFDA for review.
But based on FDA database, they have yet to receive either tentative or final approval.
There is a page for Windlas in pharmacompass but it has no DMF filings.
http://www.pharmacompass.com/pharma/ingredients/windlas
Posting the snapshots of existing ANDA holders of aforementioned drugs.
There is one doubt though with respect to the possible FTF assertion.
I could not find any ongoing litigation with the innovators, which is a given in case of Para IV FTF filings.
This needs to be clarified with either Windlas/Granules.
Disc: Not invested.
Hopefully this is not hoax 
There is comic coincidence of promoter pledging minor stakes so mix of bad and good news
MD gave an interview to economic times. As vishnu pointed in his reply these 4 ANDAs are only filed and they haven’t got any tentative or final approvals yet. Approvals are expected from Q4 2018.
He is expecting revenues upward of $100mn with 50% margins. The actual numbers would depend on how many people get approvals and the price erosion that might happen. Full interview link below:
