I know pretty well that one stock is not enough for Stockoholics like us. Therefore, in this blog, we will be discussing another gem from one of my Thursday Livestreams. The name of the company is Gufic BioSciences Limited. I found this gem along with the other shiny gem, Oriental Aromatics Ltd. whose video is already out on YouTube. If you have liked that video then keep reading this blog as I have covered the whole company analysis of Gufic BioSciences Ltd. here for you.What does the company do?
The company manufactures pharmaceutical, herbal, consumer care, and API (Active Pharmaceutical Ingredients) products. Out of these four, the first three are very easy to understand but what is the fourth product? Well, APIs are chemical compounds that are the most important raw material to produce a finished medicine. For instance, Paracetamol is the API for Crocin. The company is also into contract manufacturing (Domestic & International). Contract manufacturing occurs when a small business hires another company to produce its products. It is a form of outsourcing.
About the Company:
2. Gufic Mass Speciality Business includes products like Nutraceuticals and Natural products, Pain /Arthritis, Immune Boosters, respiratory products, and mass Anti-infectives that are supplied in bulk to General Practitioners, Pediatricians, Gynaecologists, and Physicians.
3. Gufic Speciality Business includes Gufic Stellar (Range of Unique Ortho-Gynaec products) & Gufic Aesthaderm (Range of Derma-Cosmetics mainly licensed).
a. Globally, India ranks 3rd in terms of pharmaceutical production by volume and 14th by value. The domestic pharmaceutical industry includes a network of 3,000 drug companies & ~10,500 manufacturing units.b. According to the Indian Economic Survey 2021, the domestic pharmaceutical market is expected to grow 3x in the next decade. It is estimated at US$ 42 billion in 2021 and is expected to reach US$ 65 billion by 2024 and further expand to reach ~US$ 120-130 billion by 2030.c. Indian Active Pharmaceutical Ingredient (API) industry is ranked 3rd largest in the world. The majority of APIs for generic drug manufacturing across the globe are sourced from India, which also supplies approximately 30% of the generic APIs used in the US.
(Source: IBEF & Annual Report)
Annual Financial Analysis:(Figures in Rs. Crores)