1. At a Glance
A ₹3,758 Cr pharma company with roots in anti-TB API fermentation, Gujarat Themis Biosyn has been compounding silently with 45%+ OPM and healthy ROE. But a PE of 77 and shrinking growth say: “Fermentation toh hai, lekin fizz thoda kam hai.”
2. Introduction with Hook
If you’ve ever wondered what happens when India’s first rifampicin producer, a Hungarian pharma giant, and a South Korean technical partner walk into a bioreactor — Gujarat Themis is your punchline.
- FY25 PAT: ₹49 Cr
- Operating Margins: 46%
- Sales growth? Nah, it’s actually shrinking 11% YoY
This one’s not a rocketship. It’s a slowly aging oak barrel of fermentation-based profitability — smooth, but not spicy.
3. Business Model (WTF Do They Even Do?)
GTBL specializes in fermentation-based Active Pharmaceutical Ingredients (APIs). Key differentiators:
- Anti-TB drugs: India’s first commercial rifampicin producer
- Tech collab: With Yuhan (Korea) + Themis Medicare (India)
- Core Capability: Biotech-based API production (as opposed to synthetic)
- New Plant in Vapi: US & EU-compliant expansion
- No formulations, only B2B APIs
It’s niche, sticky, and slow to scale — but profitable when done right.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue (₹ Cr) | 151 | 170 | 148 |
| EBITDA (₹ Cr) | 69 | 79 | 74 |
| PAT (₹ Cr) | 49 | 59 | 58 |
| Net Worth (₹ Cr) | 248 | 201 | 149 |
| Borrowings (₹ Cr) | 30 | 3 | 0 |
| ROCE (%) | 27% | 45% | 61% |
Takeaway:
- Margin king, but topline is dipping
- Recent expansion = asset build-up = ROCE compression
- PAT dropped 18% YoY — ouch.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹345 |
| EPS (FY25) | ₹4.48 |
| P/E | 77x |
| P/B | 15.1x |
| ROE | 21.7% |
| Market Cap | ₹3,758 Cr |
Fair Value Estimate (EduIndex):
Assuming sector-average P/E of 25–35x for a no-growth niche pharma,
FV Range = ₹115–₹155
Currently overvalued unless FY26 brings a growth steroid.
6. What’s Cooking – News, Triggers, Drama
- Merger Withdrawn: GTBL was set to merge with Themis Medicare. Now scrapped.
- New Plant Started: Vapi facility to enable regulated market exports
- Leadership Shuffle: New MD (Dr. Sachin Patel), CEO resigned
- Listed on NSE: Broader exposure, higher liquidity
- Bonus Issue (Aug 2024): 3.63 Cr shares issued
Expansion? Yes. Execution? Still fermenting.
7. Balance Sheet
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Total Assets (₹ Cr) | 301 | 221 | 166 |
| Net Worth (₹ Cr) | 248 | 201 | 149 |
| Borrowings (₹ Cr) | 30 | 3 | 0 |
| CWIP (₹ Cr) | 184 | 91 | 21 |
Observations:
- Capex spike → CWIP ballooned
- Borrowing jump = debt-funded growth (finally!)
- Still asset-light and net-worth heavy
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY25 | 91 | -112 | 26 | +5 |
| FY24 | 64 | -55 | -9 | 0 |
| FY23 | 39 | -20 | -13 | 6 |
Translation:
Healthy cash engine. Investing into growth. Debt-funded capex kicking in for future gains.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 27% |
| ROE | 21.7% |
| OPM | 46% |
| PAT Margin | 32% |
| D/E | 0.12 |
| Debtor Days | 76 |
| CCC | -67 days |
Take:
- Working capital efficiency? Chef’s kiss
- ROCE decline is cyclical — CWIP is eating returns temporarily
- Margins remain elite
10. P&L Breakdown – Show Me the Money
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | 151 | 170 | 148 |
| EBITDA | 69 | 79 | 74 |
| Net Profit | 49 | 59 | 58 |
| EPS (₹) | 4.48 | 5.43 | 5.32 |
It’s a margin-heavy, low-growth setup — sort of like a Swiss clock factory.
11. Peer Comparison
| Company | P/E | ROCE | OPM | PAT (₹ Cr) | Sales (₹ Cr) |
|---|---|---|---|---|---|
| Gujarat Themis | 77x | 27% | 46% | 49 | 151 |
| Divi’s Labs | 83x | 20% | 31% | 2,191 | 9,360 |
| Torrent Pharma | 59x | 27% | 32% | 1,915 | 11,516 |
| Zydus Lifesciences | 21x | 24% | 30% | 4,665 | 23,241 |
Verdict:
GTBL’s valuation resembles Divi’s… but without Divi’s scale or growth. Needs a catalyst.
12. Miscellaneous – Shareholding, Promoters
| Category | % Holding |
|---|---|
| Promoters | 70.87% |
| FIIs | 2.51% |
| DIIs | 1.17% |
| Public | 25.44% |
| No. of Holders | 28,945 |
Fun Facts:
- FIIs are entering
- Promoters trimmed 4% in 3 years
- Bonus issue = retail inflow
13. EduInvesting Verdict™
Gujarat Themis is like that underrated biotech nerd from college who suddenly lifts weights. A niche API player with enviable margins, world-class compliance, and high insider ownership.
But here’s the reality:
- Growth has slowed
- Valuation is ~3x fair level
- ROCE is falling short of its glorious past
Final Thought:
If fermentation is your jam, and you love niche pharma, GTBL offers a slow compounder… but wait for the foam to settle before you sip.
Metadata
Written by EduInvesting | July 13, 2025
Tags: Gujarat Themis, Pharma API, Fermentation, Themis Medicare, Niche Pharma, Margin Monster, NSE Listing, Biotech India
