1. At a Glance
Bajaj Healthcare is attempting a pharma resurrection plot—rebounding from a brutal FY24 to a cautiously optimistic FY25. Between a GenRx acquisition, CDMO deals, and export markets in over 62 countries, it’s cooking up a turnaround story… but does the prescription actually work?
2. Introduction with Hook
Imagine a pharma company going from a -₹84 Cr loss to a ₹40 Cr profit. That’s not a script from a feel-good Bollywood film—it’s Bajaj Healthcare’s FY25 story arc. A minor player with big dreams, this company now claims it’s ready to scale globally through CDMO contracts and strategic acquisitions.
- FY24 Net Loss: ₹-84 Cr
- FY25 Net Profit: ₹40 Cr (yes, from negative to positive)
- Promoter holding: Down from 67.7% to 59.2% in a year (Wait, what?)
Let’s open the prescription file.
3. Business Model (WTF Do They Even Do?)
Bajaj Healthcare Ltd (BHL) is an API + Formulation manufacturer focused on:
- APIs (Active Pharmaceutical Ingredients)
- Nutritional Supplements
- Amino Acids for Pharma, Nutra & Food Industry
Clients? 550+.
Export countries? 62+.
New verticals? CDMO (Contract Development & Manufacturing Organization).
Also acquired GenRx Pharma recently to expand portfolio and access IPs. Revenue is largely domestic but with increasing push toward regulated markets (TGA Australia approval, SEC Phase III go-ahead, DCGI greenlights, etc.)
4. Financials Overview
Revenue & Profit Trends (₹ Cr)
| Year | Revenue | PAT | OPM% | ROCE | ROE |
|---|---|---|---|---|---|
| FY21 | 657 | 83 | 21% | 36% | 30% |
| FY22 | 680 | 71 | 17% | 20% | 26% |
| FY23 | 646 | 43 | 17% | 14% | 16% |
| FY24 | 473 | -84 | 16% | 8% | -30% |
| FY25 | 543 | 40 | 15% | 11% | 12% |
- FY24 was a disaster, but FY25 seems like a course correction.
- Gross margins are stable; net profits are volatile due to interest and other expenses.
- RoE is still trying to get up after that FY24 knockout punch.
5. Valuation
Current Metrics
- CMP: ₹523
- Market Cap: ₹1,652 Cr
- Book Value: ₹148 → P/B: 3.54x
- PE: 38.5x (TTM)
Fair Value Estimate
- Base Case (PE ~25x on FY26E EPS of ₹15) → ₹375
- Bull Case (PE ~35x on FY26E EPS of ₹20) → ₹700
- Bear Case (PE ~15x on FY26E EPS of ₹12) → ₹180
Fair Value Range: ₹375 – ₹700
6. What’s Cooking – News, Triggers, Drama
Here’s a dose of what’s hot in the Bajaj lab:
- GenRx Acquisition – ₹10.85 Cr, adding R&D pipeline and manufacturing strength.
- CDMO contracts with UK & EU cos – 15 APIs to be developed/supplied.
- Regulatory Boosts – TGA (Australia), DCGI (India), SEC (USA) approvals.
- CFO Resigned + Director Exit – Ouch. Timing sours the turnaround mood.
- Preferential Allotment – Board expanded capital base in Jul 2024.
So, while fundamentals are perking up, governance signals need aspirin.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹14Cr | ₹14Cr | ₹16Cr |
| Reserves | ₹354Cr | ₹265Cr | ₹450Cr |
| Borrowings | ₹415Cr | ₹333Cr | ₹223Cr |
| Total Assets | ₹898Cr | ₹765Cr | ₹833Cr |
Key Points:
- Borrowings reduced by ₹110 Cr in FY25
- Equity dilution via preferential issue
- Net-worth improved after FY24 dip
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | -₹22 | -₹93 | ₹131 | ₹16 |
| FY24 | ₹92 | -₹11 | -₹97 | -₹16 |
| FY25 | ₹22 | -₹15 | -₹6 | ₹0 |
Key Points:
- FY24 had massive investing inflows but negative ops cash in FY23
- FY25 stabilised but still not free cash flow rich
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 14% | 8% | 11% |
| ROE | 16% | -30% | 12% |
| Debtor Days | 110 | 139 | 169 |
| Inventory Days | 199 | 206 | 206 |
| Payable Days | 81 | 128 | 122 |
| CCC | 228 | 217 | 254 |
Verdict: Working capital stress is still chronic. High receivables = cash flow bottlenecks.
10. P&L Breakdown – Show Me the Money
| Year | Sales | EBITDA | OPM% | PAT |
|---|---|---|---|---|
| FY23 | ₹646 | ₹112 | 17% | ₹43 |
| FY24 | ₹473 | ₹76 | 16% | ₹-84 |
| FY25 | ₹543 | ₹82 | 15% | ₹40 |
Summary: Revenue down from peak, margins stable, profits yo-yo due to non-op losses.
11. Peer Comparison
| Company | Sales (Cr) | PAT (Cr) | ROCE | PE | OPM% | Mcap (Cr) |
|---|---|---|---|---|---|---|
| Sun Pharma | 52,578 | 11,454 | 20% | 35x | 28.75 | ₹4.06 L Cr |
| Cipla | 27,548 | 5,142 | 23% | 23x | 25.87 | ₹1.2 L Cr |
| Zydus Life | 23,241 | 4,665 | 24% | 21x | 30.37 | ₹98,000 Cr |
| Bajaj HC | 543 | 40 | 11% | 38x | 15% | ₹1,652 Cr |
Comment: BHL is a tiny fish in a shark tank. But it’s got global approvals, a niche focus, and cost advantage—potential for niche CDMO game.
12. Miscellaneous – Shareholding, Promoters
- Promoter holding fell from 67.74% (Jun 2023) to 59.19% (Jun 2025)
- DIIs increased stake from 0.48% to 3.16%
- Public shareholding now at 36.56%
- No mutual fund coverage yet – retail-dominated stock
- 35,980 shareholders – rising interest
13. EduInvesting Verdict™
Bajaj Healthcare’s story is one of volatility with upside triggers. From negative PAT to CDMO resurgence, it’s trying to script a pharma underdog win. But governance exits, promoter stake drops, and working capital messes still linger like that one side effect doctors don’t mention.
This could be a small-cap compounder in the making—or another midcap that peaked too early.
Keep your syringes ready. And monitor patient vitals closely.
Metadata
– Written by EduInvesting Team | 20 July 2025
– Tags: Bajaj Healthcare, Pharma Stocks, CDMO, API Manufacturer, Turnaround Story, Healthcare Stocks
