GuFic Biosciences Limited Fundamental Analysis

GuFic Biosciences Limited Fundamental Analysis


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:

Founded by Mr Shri Pannalal Choksi in the year 1970, the Choksi family has more than five decades of experience in the Pharma sector. The company has 3 Domestic Brands:
1. Gufic Super Speciality Business includes Critical care medicines and Infertility products.
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).
Interesting points about the company:
They are pioneers in Lyophilization and one of the largest manufacturers of Lyophilized injections in India. Lyophilization is a water removal process typically used to preserve perishable materials and to extend shelf life. This process is done to avoid degradation, and it improves the stability and solubility of the medicine. Not only this, but they are also the pioneers in antibiotics like Amoxicillin and Dispersible Kid Tab.
Sector Analysis:
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)
Quarterly Analysis:

Financial Metrics:

I hope you enjoyed reading about this small-cap company which must have fulfilled your excitement. If you have not yet watched the video on Oriental Aromatics Ltd, click on the image below. Until next time.

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