Gujarat Themis Biosyn: An In-Depth Analysis

Brokerage Free Team • June 1, 2024 | 4 min read • 235 views



Overview

Gujarat Themis Biosyn Limited (GTBL) was established in 1981 as a joint venture with the Gujarat Industrial Investment Corporation Ltd (GIIC) and Chemosyn (P) Ltd., under the leadership of Kantilal Shah. Production began in August 1985. In June 1991, the Yuhan Group from South Korea and the Pharmaceutical Business Group (India) Ltd. (PBG) took over the company. This consortium included Themis Medicare Ltd., Kopran Ltd., Anant & Co., Cadila Health Care Ltd. (Zydus), and Lyka Labs Ltd. Since 2007, Themis Medicare Ltd., a joint venture with Gedeon Richter Ltd. from Hungary, has actively managed the company.

GTBL initially produced the antibiotic erythromycin and obtained licenses in 1990 to manufacture bulk drugs like rifampicin, cephalexin, griseofulvin, and their formulations. However, challenges with purity levels, yield, and imports led to financial difficulties, and the company became a BIFR case in 1990. A group including Lyka Labs, Themis Chemicals, Kopran, and Cadila, along with Yuhan Corporation, South Korea, which provided technology and financial support, subsequently took over the company.

In 1995-96, GTBL increased its paid-up share capital from Rs 11.25 crores to Rs 11.60 crores by allotting 350,000 equity shares at Rs 10 each, with a premium of Rs 20 per share, to financial institutions through the conversion of a fund interest term loan. The company also expanded its rifamysin-S production capacity to 90 mtpa and rifampicin production to 120 mtpa. Additionally, GTBL launched a new pharmaceutical division, introducing a variety of anti-tuberculosis products and other antibiotics.

The company continues to explore new diversification opportunities and expand the capacity of existing products to reduce production costs and increase turnover.

Key Metrics

 

Indicator CAGR 3 Yrs CAGR 5 Yrs TTM Mar '24 Mar '23 Mar '22 Mar '21 Mar '20 Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
Total Revenue 22.9% 32.1% 174.2 174.2 155 118.9 93.8 86.8 43.3 39 36.1 32.8 31.5
Operating Expenses 21.3% 22% 91.1 91.1 74.8 56.8 51.1 53.3 33.7 32.6 29.6 26.6 25.1
Operating Profit 25.8% 60.9% 79 78.7 74.2 58 39.5 31.8 7.3 6.2 6 6.1 6.3
Operating Profit Margin % 2.4% 21.7%   45.20% 47.88% 48.82% 42.07% 36.67% 16.95% 16.01% 16.77% 18.46% 19.95%
Total Expenses 21.5% 22%   94.9 77.5 59.9 52.9 55.6 35.1 34.1 31.2 28.1 26.9
EBIDT 24.9% 54.3%   83.1 80.2 62.1 42.7 33.5 9.5 6.4 6.4 6.2 6.4
EBIDT margin % 1.5% 16.7%   47.71% 51.77% 52.22% 45.56% 38.63% 22.07% 16.44% 17.79% 18.98% 20.24%
Interest 26% 14.9% 0.2 0.2 0.2 0.8 0.1 0.9 0.1 0.4 0.4 0.4 0.4
Depreciation 27.2% 23.9% 3.5 3.5 2.6 2.2 1.7 1.4 1.2 1.1 1.1 1.2 1.4
Profit Before Tax 24.7% 57.4% 79.3 79.3 77.5 59 40.9 31.3 8.2 4.8 4.9 4.6 4.6
Tax 23.6% 62.2% 20.2 20.2 19.5 15.4 10.7 7.6 1.8 1 0.5    
PAT Before ExtraOrdinary Items 25.2% 56%   59.2 58 43.6 30.2 23.7 6.4 3.9 4.4 4.6 4.6
Net Profit 25.2% 56% 59.2 59.2 58 43.6 30.2 23.7 6.4 3.9 4.4 4.6 4.6
Net Profit Margin % 1.5% 17.4%   34.83% 38.91% 37.98% 33.32% 27.81% 15.61% 9.96% 12.26% 14.18% 14.61%
EPS -27% 13%   8.1 39.9 30 20.8 16.3 4.4 2.7 3 3.2  
Cash from Operating Activity 120.4% 146.9%   64.2 39.5 40.3 6 0.6 0.7 5.6 2.8 3.9 2.7
Cash from Investing Activity -2500% -56.9%   -55.2 -20.4 -29.8 2.3 -3 -5.8 -1 -2.5 -0.8 -0.3
Cash from Financing Activity -18.3% -262.3%   -8.6 -13.3 -14 -5.2 2.1 5.3 -3.8 -0.2 -3.1 -3.1
Net Cash Flow - -   - 5.8 -3.5 3.1 -0.3 0.2 0.8 0.1 0 -0.7

 

Shareholding Pattern

Shareholding Pattern
                     
In % DEC'21 MAR'22 JUN'22 SEP'22 DEC'22 MAR'23 JUN'23 SEP'23 DEC'23 MAR'24
Promoter 74.99 74.99 74.99 74.99 74.99 74.99 74.99 74.99 70.86 70.86
Public Shareholding 25.01 25.01 25.01 25.01 25.01 25.01 25.01 25.01 29.14 29.14
Institutions 0.31 0.31 0.31 0.03 0.04 0.04 0.04 0.04 0.91 1.87
Non-Institutions 24.7 24.7 24.69 24.97 24.96 24.96 24.96 24.96 28.23 27.26
Shares held by Custodians - DR
No. of Shareholders 13059 13917 13830 14904 16550 16804 17373 19846 28655 29576



Understanding the shareholding pattern of Gujarat Themis Biosyn provides insights into the ownership structure and investor confidence.


Promoters: The promoter group, including Themis Medicare Ltd. and GIIC, holds a substantial stake, around 72%, ensuring strong control and direction over the company's strategic decisions.


Institutional Investors: A small portion, about 2%, is held by institutional investors such as mutual funds and insurance companies, indicating institutional trust in the company's growth prospects.


Retail Investors: Retail investors hold the remaining 26%, reflecting growing retail interest due to the company's consistent performance and promising future.


PEER COMPARISON
Peer Name Latest Price PE Market cap(Cr) Prom Holding(%) YoY Qtly Sales(%) ROCE(%) ROE(%)
Guj. Themis Biosyn 386.8 46.52 2752 70.86 52.3 51.42 38.87
Indoco Remedies 306.65 28.06 2763 58.72 5.02 16.9 13.83
Sequent Scientific 106.35 0 2582 52.79 -1.49 -3.71 -17.34
Novartis 1021 30.26 2577 70.68 6.62 6.57 13.33
Gufic Biosciences 307 35.85 3088 72.51 12.69 20.1 22.92
Unichem Lab 537.1 0 3817 70.22 7.36 -4.74 -8.3
Zota Health Care 473 0 1232 66.15 34.7 -2.29 -7.18
Beta Drugs 1198.95 31.72 1156 66.73 32.39 25



The above table gives a good picture on how the company fares against its competitors. As we can see, the Sales, ROCE and ROE are better than the peer entities.


Strategic Initiatives and Future Prospects


Gujarat Themis Biosyn is poised for continued growth, supported by several strategic initiatives:


Capacity Expansion: GTBL is investing in expanding its production capacities to meet the increasing demand for its products, both domestically and internationally.


R&D Investment: Enhanced focus on research and development to innovate and introduce new products, particularly in high-demand therapeutic areas.


Market Diversification: Efforts to diversify its market presence beyond India, targeting regulated markets such as the US and Europe for higher revenue and margin opportunities.


Sustainability Practices: Implementation of environmentally sustainable practices in manufacturing, aligning with global standards and improving its ESG (Environmental, Social, and Governance) ratings.


Conclusion


Gujarat Themis Biosyn Ltd. stands out in the pharmaceutical industry with its strong financial performance, strategic shareholding pattern, and focused growth strategy. While it operates on a smaller scale compared to some of its peers, its niche specialization, efficient operations, and strategic initiatives position it for sustained growth and value creation for its shareholders. The company's future prospects appear bright, supported by ongoing investments in capacity, R&D, and market diversification.

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