At a Glance
Gujarat Themis Biosyn (GTBL) posted Q1 FY26 revenue ₹35.9 Cr (down 7.6% YoY) and PAT ₹9.06 Cr (down 31.6% YoY), with margins shrinking to 38.8% from the golden 50% levels. Despite this, the stock sits pretty at ₹375, wearing a P/E of 83.7 like it’s the Louis Vuitton of APIs. Management scrapped the merger plan but launched a new API plant, probably to justify this “designer” valuation.
Introduction
GTBL is the quirky API manufacturer from Gujarat, famous for being India’s first Rifampicin producer (thanks to its South Korean collab) and for being managed by Themis Medicare Ltd, which itself has a European pedigree via Gedeon Richter. While the world fights tuberculosis, GTBL has been quietly compounding returns at a rate that makes investors feel like they’re on antibiotics—relieved but slightly dizzy.
Business Model (WTF Do They Even Do?)
GTBL manufactures APIs (Active Pharmaceutical Ingredients) via fermentation, specializing in anti-TB drugs.
- Core Product: Rifampicin (biggest revenue contributor)
- Customers: Pharma majors and generic manufacturers.
- Edge: Tech collaborations and fermentation know-how.
- Recent Moves: New API plant to expand capacity.
Translation: They cook bacterial soup, extract life-saving molecules, and sell it at fat margins. The problem? High dependency on one product and its price cycles.
Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹35.9 Cr (↓7.6% YoY)
- EBITDA: ₹13.9 Cr (OPM 38.8%)
- PAT: ₹9.06 Cr (↓31.6% YoY)
- EPS: ₹0.83
FY25 Full Year:
- Revenue: ₹151 Cr
- PAT: ₹49 Cr
- Margins: OPM 46%, PAT 32%
Commentary: Margin erosion and PAT decline scream pricing pressure. Yet, the market loves GTBL like it’s an exclusive biotech unicorn.
Valuation
CMP ₹375 | Market Cap ₹4,081 Cr
Fair Value Calculations
- P/E Method:
EPS FY25 ₹4.5 × sector P/E 30 → ₹135. - EV/EBITDA:
EV ₹4,081 Cr / EBITDA ₹64 Cr → 63x, yikes. - DCF:
Assuming 12% growth, WACC 9% → fair value ₹150 – ₹200.
Fair Value Range: ₹150 – ₹200 (CMP is 2x–2.5x higher than fundamentals).
What’s Cooking – News, Triggers, Drama
- Merger plan scrapped (potential synergy lost).
- New API plant operational—capacity expansion but will it lift margins?
- Dividend record date set (tiny yield 0.19%).
- Promoter stake down 4.1% in 3 years, maybe they see the bubble?
Balance Sheet
| Particulars (₹ Cr) | Mar 23 | Mar 24 | Mar 25 |
|---|---|---|---|
| Assets | 166 | 221 | 301 |
| Liabilities | 166 | 221 | 301 |
| Net Worth | 149 | 201 | 248 |
| Borrowings | 0 | 3 | 30 |
Remark: Assets growing fast, debt creeping in but still manageable.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 39 | 64 | 91 |
| Investing CF | -20 | -55 | -112 |
| Financing CF | -13 | -9 | 26 |
Comment: Cash from ops solid, investing in CWIP-heavy API plant expansion.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 32% | 21.7% | 22% |
| ROCE | 61% | 45% | 27% |
| P/E | 74x | 90x | 83.7x |
| PAT Margin | 39% | 32% | 30% |
| D/E | 0 | 0.01 | 0.12 |
Remark: ROCE slipping, valuation insanity persists.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 148 | 170 | 151 |
| EBITDA | 74 | 79 | 69 |
| PAT | 58 | 59 | 49 |
Remark: Flat growth, margin compression, yet price rallies.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Sun Pharma | 53,777 | 11,463 | 34 |
| Dr. Reddy’s | 33,519 | 5,656 | 18 |
| Torrent Pharma | 11,835 | 2,019 | 61 |
| GTBL | 148 | 49 | 84 |
Remark: GTBL has tiny revenue yet trades at higher P/E than big boys.
Miscellaneous – Shareholding, Promoters
- Promoters: 70.9% (down from 75%).
- FIIs: 2.5% (uptrend, maybe chasing growth).
- Public: 25.4%.
Promoter Bio: Themis Medicare (JV with Gedeon Richter) ensures technical credibility, but stake reduction raises eyebrows.
EduInvesting Verdict™
GTBL is a classic case of small-cap pharma with great margins being priced as if it’s the next Pfizer. Fundamentals are good—high ROCE, zero-to-low debt, solid cash flows. But growth is flattening and margins are under stress.
SWOT
- Strengths: API expertise, strong ROE, capacity expansion.
- Weaknesses: High P/E, margin erosion, promoter stake decline.
- Opportunities: New plant scaling up, API demand globally.
- Threats: Price control on anti-TB drugs, competition from China.
Conclusion:
Great company, bad stock price. At ₹375, investors are paying biotech startup multiples for an API veteran with slowing growth. Unless the new plant brings a revenue surge, this might just remain a beautifully dressed value trap.
Written by EduInvesting Team | 01 August 2025
SEO Tags: Gujarat Themis Biosyn, Q1 FY26 Results, Rifampicin API, Pharma Analysis
